When Selecting a Vendor,two Criteria to Assess First Are _____________

question 10

Multiple Choice

When selecting a vendor,two criteria to assess first are _____________.

• A)Experience and stability
• B)Cost and delivery time
• C)Location and product mix
• D)Reputation and trial run

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Definitions:

Pension Funds

Investment pools, typically of large size, established to manage and invest the retirement funds of employees, offering them income upon retirement.

Credit Unions

Member-owned financial cooperatives that provide the same services as banks but are typically nonprofit, aiming to serve their members rather than maximize profit.

Agency Problem

A conflict of interest inherent in any relationship where one party is expected to act in the best interest of another.

Moral Hazard

A condition in which a person can benefit, usually financially, by acting unethically or immorally, i.e., the person is tempted to be less than honest and ethical. An insurance term. A moral hazard exists when executive compensation is heavily based on the market price of the company’s stock.