If One of the Suppliers That Digipics Purchases Its Components

question 10

Multiple Choice

If one of the suppliers that Digipics purchases its components from purposefully delivered a batch of its product that was substandard but did not inform Digipics of this, this would be an example of

• A) flexibility.
• B) opportunism.
• C) uncertainty.
• D) vertical integration.

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Definitions:

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life.

Initial Cost

The initial expenditure involved in acquiring an asset or launching a project, not including operational or maintenance costs.

Equipment

Tools, machinery, and other durable assets used in the production of goods or services.

Maintenance Hangar

A facility dedicated to the maintenance, repair, and overhaul (MRO) of aircraft.