A Major Disadvantage of Centralized Purchasing to a Chain Retailer

question 103

Multiple Choice

A major disadvantage of centralized purchasing to a chain retailer is ________.

• A) overdependence on the boss
• B) lack of quantity discounts
• C) absence of bargaining power
• D) complex managerial control

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Definitions:

Production Possibilities Curve

A graphical representation showing the maximum combination of goods or services that can be produced with given resources and technology.

Negative Slope

A feature of a line on a graph that indicates a decrease in the dependent variable as the independent variable increases.

Production Possibilities

The different quantities of goods and services that an economy can produce given its available resources and technology, as represented by a production possibility curve.

Better Technology

Improvements or advancements in technology that increase efficiency or productivity.