Poor Performance on a Contract May Result in a Supplier's

question 154

Multiple Choice

Poor performance on a contract may result in a supplier's name being dropped from the buying organization's:

• A)bidders' list.
• B)Christmas card list.
• C)vendor-rating sheet.
• D)supplier's sheet.

---

Definitions:

Operating Income

The profit realized from a company's everyday core business operations, excluding deductions of interest and taxes.

Cash Payback Period

The duration needed for an investment to generate cash flows sufficient to recover the initial cost of the investment.

Net Cash Inflow

Net cash inflow refers to the difference between the cash inflows and outflows within a given period, indicating the net change in cash and cash equivalents resulting from a company's activities.

Cash Payback Period

The time it takes for an investment to generate cash flow sufficient to recover its initial cost.