Which of the Following Statements Is FALSE with Respect to Supplier

question 29

Multiple Choice

Which of the following statements is FALSE with respect to supplier phase out?

• A)Phasing out suppliers is costly and can disrupt the operations of both the buying and selling firms.
• B)The decision to switch to a new supplier should be made after careful consideration.
• C)A buying organization should include exit clauses in the contract to ensure that penalties for early contract termination are avoided.
• D)Phasing out suppliers is relatively easy and inexpensive.

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Definitions:

Labor Union

An organization of workers formed to protect and advance their rights and interests, commonly through collective bargaining.

Maslow's Hierarchy

A psychological wellness theory based on satisfying inherent human necessities in order, ultimately leading to self-actualization.

Alderfer's ERG Theory

A theory in psychology that categorizes human needs into three categories: Existence, Relatedness, and Growth, positing that these needs can influence people's behavior.

Herzberg's Two-Factor Theory

A motivational theory that suggests job satisfaction and dissatisfaction arise from two different sets of factors – hygiene factors and motivators.