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Explain What May Occur When a Buyer and a Seller

question 30

Essay

Explain what may occur when a buyer and a seller have unequal amounts of limited information.Describe two different types of problems that may arise when asymmetric information exists.


Definitions:

Outsource

The practice of contracting work out to an external organization rather than performing it in-house.

Information

Data that has been processed in such a way that it can be used to inform decisions, strategies, and actions.

Supply Chain

A composite of enterprises, participants, procedures, information, and instruments implicated in the conveyance of a product or service from the vendor to the patron.

Lost Sales

Potential sales that cannot be realized due to stockouts, inadequate inventory, or other operational issues.

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