An Annual Requirements Contract

question 36

Multiple Choice

An annual requirements contract:

• A)is an inventory check of an organization's supplies at the end of the fiscal year.
• B)is an individual spot contract on the open market.
• C)is a buyer's obligation to fill a buyer's need for a product consistently over a year
• D)is a buyer's responsibility to list out the requirements that a buyer should provide over an year.

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Definitions:

Control

The power to influence or direct people's behavior or the course of events.

Legitimate Power

A form of authority derived from a position or role that gives the holder the right to make decisions, command, and influence others.

Formal Hierarchical Authority

The clearly defined structure in an organization that dictates levels of responsibility, power, and control.

Association Power

The influence an individual or group can exert due to the connections or relationships they have.