Which of the following is true with regard to primary firms,first-tier suppliers,and second-tier suppliers?
A)A first-tier supplier is the primary firm to a second-tier supplier.
B)A second-tier supplier is the primary firm to a first-tier supplier.
C)Second-tier suppliers are not as important as first-tier suppliers.
D)To a primary firm,a first-tier supplier supplies finished goods and a second-tier supplier supplies raw materials.

Question

Quizplus · Accepted Answer

The primary firm typically purchases finished goods from a first-tier supplier, and raw materials from a second-tier supplier. Therefore, option D is the correct statement. Option A is incorrect as a first-tier supplier is not the primary firm to a second-tier supplier, but rather a primary firm's direct supplier. Option B is incorrect as a second-tier supplier is not the primary firm to a first-tier supplier. Option C is incorrect as second-tier suppliers can also be important as they provide raw materials to first-tier suppliers.

Which of the Following Is True with Regard to Primary