Qualitative Factors That Should Be Considered When Evaluating a Make-Or-Buy

question 69

Multiple Choice

Qualitative factors that should be considered when evaluating a make-or-buy decision are

• A)the quality of the outside supplier's product.
• B)whether the outside supplier can provide the needed quantities.
• C)whether the outside supplier can provide the product when it is needed.
• D)all of the above.

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Definitions:

Bond Owners

Individuals or entities that hold the debt securities issued by corporations or governments, earning interest over time.

Equity Finance

The method of raising capital through the sale of shares in a company, giving shareholders ownership interests.

Bonds

Fixed income investments where an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a fixed interest rate.

Loanable Funds

The money available for borrowing in the economy, which comes from savings and is used for investments and other purposes.