When an Industry Member Is a Major Customer of the Supplier

question 72

Multiple Choice

When an industry member is a major customer of the supplier, and the relationship (partnership) is unusually effective and mutually advantageous

• A)it is rare for such partnerships to have much competitive impact on those industry members not having such partnerships.
• B)one unfortunate outcome is that it tends to give the supply partners much enhanced bargaining power in their dealings with these industry members.
• C)there is a strong likelihood such partnerships will put increased competitive pressure on those industry members who lack productive collaborative relationships with their suppliers.
• D)there is a high likelihood of such partnerships reducing competitive pressures on all industry members, provided technological change in the suppliers' business is rapid and the item being supplied is a commodity.
• E)the usual result is to reduce competitive pressures on all industry members, provided the costs of the items furnished by supply chain partners amount to 50 percent or more of total cost.

Recognize the components of the welfare state in wealthy countries with a focus on health care.

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Explain the structure and benefits of employment-based health insurance in the United States.

Identify the characteristics that define common resources, private goods, public goods, and artificially scarce goods.

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Definitions:

Operating Cycles

The period it takes for a company to purchase inventory, sell it, and convert the sale into cash.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Cost of Merchandise Sold

The total cost incurred to acquire goods that have been sold during a period, including purchase price and other expenses related to procurement.

FOB Shipping Point

A term indicating that the buyer takes ownership and pays for transportation costs once the goods leave the seller’s premises.