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:

Suprachiasmatic Nucleus

A tiny region in the brain's hypothalamus responsible for controlling circadian rhythms by regulating the body's internal clock.

Biological Clock

An internal mechanism that regulates physiological and behavioral rhythms in organisms in a roughly 24-hour cycle.

Retina

The light-sensitive layer at the back of the eye that contains cells which convert light into electrical signals sent to the brain.

Beta Waves

A pattern of brain waves that are associated with active, alert thought and a focused state of mind.