A Business May Prefer to Make a Product That It

question 10

Multiple Choice

A business may prefer to make a product that it could subcontract at a cheaper price because:

• A)they may be concerned that having gained their business, the subcontractor could increase the price charged.
• B)by subcontracting the business, they may find supply is less reliable.
• C)by subcontracting the business, they may lose control over quality.
• D)all of the above.

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Definitions:

Employer Value

The benefits and offerings provided by an employer that make the organization attractive to current and potential employees, often including compensation, work-life balance, and career opportunities.

Market Pricing

The process of determining the value of a job in an organization based on the prevailing market rate for similar positions in the external labor market.

Job Evaluation

The systematic process for assessing the relative worth of jobs within an organization to establish a fair and equitable pay structure.

Pay for Knowledge

A compensation system where employees are paid based on the range and depth of their skills and knowledge, rather than strictly on their job position or seniority.