When There Is a Minimal Need for Close Long-Term Cooperation

question 7

Multiple Choice

When there is a minimal need for close long-term cooperation between a company and its suppliers, which of the following strategies is the most appropriate?

• A)Full integration
• B)Taper integration
• C)Competitive bidding
• D)Long-term contracting
• E)Diversification based on economies of scope

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Definitions:

Stock of Goods

The inventory of products or goods that a company has on hand to sell to customers.

Independent Distributors

Businesses or individuals that distribute products or services, but are not directly employed by the manufacturers of those products, allowing for operational and financial autonomy.

Internal Affairs

A doctrine in corporate law that allows the internal affairs of a corporation, such as shareholder rights, to be governed by the laws of the state of incorporation.

Incorporated

The process of legally declaring a corporate entity as separate from its owners, providing it with certain legal rights and responsibilities.