Which of the Following Is a True Argument Regarding the Make-Or-Buy

question 10

Multiple Choice

Which of the following is a true argument regarding the make-or-buy decision process?

• A)Firms should make an asset,rather than buy it,if that asset is a source of competitive advantage for the firm
• B)Firms should buy,rather than make,to avoid the costs of making the product
• C)Firms should make,rather than buy,to avoid paying a profit margin to independent firms
• D)Firms should buy,rather than make,in general,because market firms are subject to the discipline of the market and must be efficient and innovative to survive
• E)Firms should make,rather than buy,because a vertically integrated producer will be able to avoid paying high market prices for the input during periods of peak demand or scarce supply

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Definitions:

Workplace representation

The act of employees selecting individuals or bodies (such as unions or committees) to represent their interests and concerns to management.

France

A country in Western Europe known for its history, culture, and significant influence in art, science, and politics.

U.S.

The United States of America, a country in North America composed of 50 states, a federal district, five major self-governing territories, and various possessions.

Collective bargaining

The process in which employers and unions negotiate terms of employment, including wages, hours, and working conditions, for a group of employees.