For families employed and living in "company towns" (i.e., where the major employer owns all homes, retail stores, etc.), explain the lack of diversification
What will be an ideal response?
Since the large local employer owns all retail establishments, the demise of the company will cause the demise of the entire town. Distribution of ownership would reduce the impact of a company failure.
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Indicate whether the statement is true or false.
Purchase volume per transaction for indirect material purchases is ______.
A. very large B. moderate C. relatively small D. large
Which of the following is shown on the balance sheet as well as the statement of cash flows?
A) Stockholders' equity (ending balance) B) Net income C) Total assets (ending balance) D) Cash (ending balance)
Which of the following is NOT an advantage of the "few suppliers" sourcing strategy?
A) suppliers have a learning curve that yields lower transaction and production costs B) suppliers are more likely to understand the broad objectives of the end customer C) less vulnerable trade secrets D) creation of value by allowing suppliers to have economies of scale E) suppliers' willingness to provide technological expertise