Levin and Co

question 64

Multiple Choice

Levin and Co. is a group of oil refineries that has been in the news recently. The company had to stop production for over two weeks because their key supplier refused to sell them crude oil at the old prices. Even after rounds of negotiations, the supplier refused to give in to the demands of Levin and Co., and finally, the company had to acquire the raw material from the same supplier because alternative suppliers, though abundant, could not provide the quantities the company demanded at such short notice. This shows the role of ________ in increasing the power one enjoys.

• A) alternatives
• B) dependence
• C) abundance
• D) substitutability
• E) exchange

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Definitions:

Social Entities

Refer to groups or organizations that are focused on social objectives and activities, rather than profit-making.

Authority

The right or power assigned to an individual or organization to make decisions, command resources, or enforce rules within a specific context.

Open System

A concept in organizations and their management indicating that an organization interacts with its environment through the exchange of information, energy, or resources.

Inputs and Outputs

Refers to the materials, information, or people that enter a system (inputs) and the results or products that come out of it (outputs).