Which of the Following Is an Advantage for Suppliers Involved

question 93

Multiple Choice

Which of the following is an advantage for suppliers involved in sole sourcing?

• A)It allows them to forecast a predictable and profitable demand.
• B)It allows them to seek competitive bids for the products obtained by sole sourcing.
• C)It allows them to slacken quality over time since a contract is established.
• D)It allows them to seek more new task purchases than straight rebuys.

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Definitions:

Derecognition

The process of removing a financial asset or liability from a company's financial statements, usually because it has been sold, repaid, or no longer meets the criteria for recognition.

Financial Liability

An obligation to transfer cash or other resources as a result of past transactions or events.

Contractual Obligation

A contractual obligation is a duty or responsibility that one party is legally bound to perform under a contract agreement with another party.

Cash Consideration

Payment made in cash during a transaction, as opposed to stock exchange or other non-cash assets.