What Is the Main Reason a List of Potential Alternative

question 56

Multiple Choice

What is the main reason a list of potential alternative suppliers be maintained?

• A)in case the primary supplier is out of stock
• B)so the firm can sample different suppliers
• C)in case the primary supplier is more expensive
• D)to segregate purchasing suppliers

---

Definitions:

Temporal Discounting

A preference for immediate gratification over rewards that come later.

Risk Aversion

A behavioral tendency to prefer avoiding losses over acquiring equivalent gains, indicating a preference for certainty and safety.

Certainty Effect

The tendency for people to give greater weight to outcomes that are certain, compared to outcomes that are probable, often observed in decision-making under uncertainty.

Definite Outcomes

A term used to describe results or consequences that are clear, predictable, and unambiguous.