When Shopping for a Vendor,a Small Business Owner Should Seek

question 96

Multiple Choice

When shopping for a vendor,a small business owner should seek:

• A)the best transfer of risk possible.
• B)the lowest price.
• C)the best price at acceptable quality.
• D)to change vendors often in order to get the lowest price.

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Definitions:

Tariff

A levy placed by a government on goods that are brought into or sent out of a country.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Specific Tariff

A type of tax levied on imports that is based on a specific amount of money per unit of the good imported, rather than on its value.

World Price

The global market price of a product, influenced by worldwide conditions of supply and demand.