Which of the Following Is Not a Risk of Selecting

question 63

Multiple Choice

Which of the following is not a risk of selecting a supplier in poor financial condition?

• A) The supplier is unwilling to share its technical expertise with the purchaser.
• B) The supplier will go out of business.
• C) Suppliers that are in poor financial condition may not have the resources to invest in plant, equipment, or research that is necessary for longer-term technological or other performance improvements.
• D) The supplier may become too financially dependent on the purchaser.
• E) Financial weakness is usually an indication of underlying problems.

---

Definitions:

LLC

A Limited Liability Company, a flexible form of enterprise that blends elements of partnership and corporate structures.

Wrongful Acts

Actions that are illegal or immoral, violating legal or ethical standards.

Manager Members

Individuals who are both managers and members in a management structure, particularly in LLCs, having both operational control and ownership interests.

LLC

stands for Limited Liability Company, a business structure that combines elements of partnerships and corporations, providing owners with limited liability protection.