Megan Owns a Company That Makes Specialized Components for the Auto

question 53

Multiple Choice

Megan owns a company that makes specialized components for the auto industry. Her most important customer is a company that is growing at a rate of 25% per year. Megan is working hard to grow her firm, because she knows that unless her company continually grows it will not be able to keep pace with the growth of its most important customer. This examples illustrates the reason for growth referred to as:

• A) capturing economies of scope
• B) executing a scalable business model
• C) market leadership
• D) influence, power, and survivability
• E) need to accommodate the growth of key customer

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Definitions:

Delegator

A party in a contract who transfers his or her duties to perform to a third party who is not a part of the original contract (a delegatee).

Donee Beneficiary

A third party who benefits from a contract between two other parties, especially in cases involving the transfer of a gift or a donation.

Promisor

In a third-party beneficiary contract, the party to the contract who made the promise that benefits the third party.

Third-Party Beneficiary

An individual or entity that, though not a party to a contract, stands to benefit from its execution.