Why Is It Beneficial to Have a Strategic Partnership with Suppliers

question 91

Multiple Choice

Why is it beneficial to have a strategic partnership with suppliers?

• A)The company can be sure of the source of their input material
• B)The organisation can collaborate and share information with the supplier and achieve better effectiveness
• C)The suppliers develop a specific ordering system for the organisation
• D)The supplier can have more power over the organisation to determine prices

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Definitions:

Contract Authorization

The process or act of giving official or legal approval to a contract, enabling it to be valid and enforceable.

Automatically Terminated

Describes a legal status or condition that ends without the need for any action by a party due to pre-set conditions being met.

Agency Relationship

A legal arrangement where one party, the agent, is authorized to act on behalf of another, the principal, in business transactions.

Principal

A person or entity who authorizes an agent to act on their behalf in dealings with third parties.