Compared to Making a Product or Component, Buying It Has

question 20

Multiple Choice

Compared to making a product or component, buying it has the advantage of:

• A) guaranteed source of supply.
• B) greater specialization of your own business.
• C) direct control of quality.
• D) direct control of delivery.

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Definitions:

Common Stock

Equity ownership in a corporation, giving holders voting rights and potential dividends.

Subscription Receivable-common Stock

Subscription receivable-common stock refers to the amount due from subscribers who have agreed to purchase common stock but have not yet paid.

Stock Subscription Plan

A mechanism for employees or investors to buy shares of a company's stock, often at a discount.

Paid in Capital

The portion of the shareholders' equity that represents the amount investors have put into the company by purchasing shares directly from the company.