Delicious Donuts Store has been making and distributing donuts for the past 4 years from the same location.It also maintains a good payment record.However, due to some bad operational decisions, it is now facing cash crunch.Nevertheless, the suppliers are ready to supply material for a credit period of 120 days.Which of the following terms is the most probable reason behind the trust that suppliers have on Delicious Donuts Store?
A)Efficiency
B)Transparency
C)Elasticity
D)Legitimacy

Question

Quizplus · Accepted Answer

Legitimacy refers to the perception of a company as being socially responsible and conforming to legal and ethical standards. Delicious Donuts Store has maintained a good payment record for 4 years which showcases its legitimacy to the suppliers. This is the most probable reason behind the trust that suppliers have on Delicious Donuts Store.

Delicious Donuts Store Has Been Making and Distributing Donuts for the Past