Which of the Following Is a True Argument Regarding the Make-Or-Buy

question 10

Multiple Choice

Which of the following is a true argument regarding the make-or-buy decision process?

• A)Firms should make an asset,rather than buy it,if that asset is a source of competitive advantage for the firm
• B)Firms should buy,rather than make,to avoid the costs of making the product
• C)Firms should make,rather than buy,to avoid paying a profit margin to independent firms
• D)Firms should buy,rather than make,in general,because market firms are subject to the discipline of the market and must be efficient and innovative to survive
• E)Firms should make,rather than buy,because a vertically integrated producer will be able to avoid paying high market prices for the input during periods of peak demand or scarce supply

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Definitions:

Beanpole Family

A family structure characterized by fewer children but more generations living together or maintaining close ties, resembling a long, thin pole.

Nuclear

Refers to processes, reactions, or technologies that involve the nucleus of atoms, including the energy produced from nuclear fission or fusion.

Stratified

Categorized into different levels or layers, especially in a hierarchical order.

Collective

Pertaining to or involving a group of individuals acting as a whole.