Second Sourcing

question 89

Multiple Choice

Second sourcing

• A)occurs when business firms leave a market.
• B)occurs because many big businesses have policies that provide for set-asides for purchases from small businesses.
• C)offers the advantage of being globally based.
• D)at its best provides a competitive pressure to keep both suppliers providing the best service and prices.

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Definitions:

Limited by Guarantee

A form of incorporation used primarily by non-profit organizations where the liability of the members is limited to the amount they agree to contribute if the company is wound up.

Equity

The residual interest in the assets of an entity after deducting liabilities, representing ownership interest.

Share Capital

Share capital refers to the amount of money a company has raised by issuing shares to shareholders, representing the ownership interest of the shareholders in the company.