Relational Contracts

question 2

Multiple Choice

Relational contracts

• A) Ensures continuity in a relationship because suppliers are now hierarchically connected employees
• B) Can establish procedures or structures for planning to ensure ongoing effective exchange
• C) Are formal efforts to obtain evidence of supplier capabilities and commitment
• D) Are contracts to purchase a specified quantity over a period of time at an agreed-upon price
• E) Precipitates the formation of a development team consisting of representatives from various areas such as manufacturing, purchasing and technical centers

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Definitions:

Large-company Stocks

Shares that represent ownership in large, well-established companies typically characterized by a high market capitalization.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values, often used to gauge the risk associated with a certain investment or portfolio.

Probability

A measure of the likelihood of a specific event or outcome occurring, expressed as a number between 0 and 1.