Why Do Firms Assess Their Sourcing Capabilities

question 2

Multiple Choice

Why do firms assess their sourcing capabilities?

• A)They are looking for ways to reduce their employee headcount.
• B)They can easily spot suppliers who are not practicing sustainable sourcing practices.
• C)They can gauge their success in improving their own value-enhancing contributions to the firm
• D)It helps them improve communication with their suppliers.

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Definitions:

Cyclical Unemployment

A type of unemployment that results from business cycle fluctuations in the economy, typically increasing during recessions and decreasing during expansions.

Unemployment

A situation where individuals who are capable of working and willing to work cannot find jobs.

Labor Force Participation Rate

This term refers to the percentage of the working-age population that is either employed or actively looking for work.

Discouraged Workers

Individuals who are not actively seeking work because they believe no jobs are available for them or there are no jobs for which they would qualify.