Starbucks Defines Supplier Diversity as

question 161

Multiple Choice

Starbucks defines supplier diversity as

• A)the selection of suppliers based upon their ability to supply not only coffee products but at least one other type of product such as tea, chocolate beans, etc.in order to counteract any negative environmental force that might impede supply and/or production.
• B)selection of suppliers from multiple countries, on almost every continent, to offset any possible environmental force (such as plant blight) that would affect one country or continent but not another.
• C)the guarantee by suppliers that at least 5% of profits that result from Starbucks generated business are returned to the suppliers' local community or country for charitable purposes.
• D)a company that is 51% owned, operated and managed by women, minorities, or socially disadvantaged individuals while still meeting Starbucks quality standards.
• E)a company that can prove that it has never discriminated in its hiring or firing practices for a period of at least 5 years prior to negotiating a Starbuck contract.

---

Definitions:

Consignment

An arrangement in which goods are left in the possession of another party to sell, but the consignor retains ownership until the goods are sold.

Net Realizable Value

The estimated selling price of an asset in the ordinary course of business minus any costs of completion, transportation, and necessary selling expenses.

Direct Costs of Disposal

The expenses directly linked to the process of disposing of an asset, including sales fees and legal costs.

Decreasing Costs

A situation where the expenses of producing a good or service fall over time, typically due to efficiency improvements or economies of scale.