If a Supplier Is Unlikely to Meet Future Requirements,the Buying

question 48

Multiple Choice

If a supplier is unlikely to meet future requirements,the buying firm has several alternatives.Which is typically not one of the alternatives?

• A) Assist with financing to help the supplier meet future requirements
• B) Negotiate a better price with the supplier for the current contract
• C) Assist with technological assistance to help the supplier meet future requirements
• D) Develop new sources to replace the supplier
• E) Develop the capability internally to replace the supplier

---

Definitions:

Public Sector

The part of the economy that is controlled by the government and includes government services and entities.

Profit And Loss

The financial statement that summarizes revenues, costs, and expenses to show the net profit or loss of a business over a specific time period.

Negative Externalities

Costs suffered by a third party as a result of an economic transaction, which are not reflected in the transaction's price, such as pollution caused by manufacturing.

Special-Interest Effect

The impact on policy or decision-making driven by the concentrated benefits to a small group while the costs are dispersed among the general population.