A Relationship Between a Firm and Its Supplier Where the Supplier

question 28

Multiple Choice

A relationship between a firm and its supplier where the supplier agrees to meet the firms' quality standards and the firm enters into a long-term purchasing agreement with the supplier is known as

• A)outsourcing.
• B)vertical integration.
• C)partnering.
• D)conformance.

---

Definitions:

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business.

Cash Dividends

Payments made by a corporation to its shareholder members from the company's current or retained earnings.

Capital Stock

Reflects the amount of equity financing a company has generated through the sale of its shares to investors.

Financing Activities

Transactions and events whereby resources are obtained from, or repaid to, owners (equity financing) or creditors (debt financing).