A Company Is Deciding Between 2 Foreign Firms to Provide

question 42

Essay

A company is deciding between 2 foreign firms to provide its call center services.A factor-rating method is used.Factors are rated on a scale of 1-10,with 10 being the best score.
A: If the factors are weighted equally (respective weights of .3333),which firm is preferred?
B: Suppose a consultant recommended that Factor 2 be twice as important as Factor 1,while Factor 3 should be four times as important as Factor 1.Which firm is best now using a weighted method? (Round your weights to the nearest four decimal places.)

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.

Distributions

Payments made from a company or a fund to its shareholders, often from profits or reserves.

Risk

The exposure to the chance of loss or adverse outcomes in decision-making and financial investments, varying in likelihood and potential impact.

Uncertainty

The lack of certainty or predictability in the outcome of an event, often affecting decision-making and financial projections.