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The Purchasing Manager for Telsa Motor Co

question 23

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The purchasing manager for Telsa Motor Co. decides to call three suppliers of automobile windshields for a bid on an order for 1,000 windshields for a new Ford car, instead of calling a hundred possible windshield suppliers for such a bid. What type of decision does this represent?

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Definitions:

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Book Value Per Share

A financial measure that divides a company's book value by its number of outstanding shares, indicating the equity value per share.

Common Equity

The amount of funds contributed by shareholders plus the retained earnings within a company, representing ownership in the business.

Net Income

The net earnings a company obtains once all costs and taxes are subtracted from its income.

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