What legitimate reason might management have for insisting that one of its divisions buy a part from another division within the same company even though the buying division could source the part at a lower price externally?
A) It wants to make use of excess capacity in the seller's division.
B) It is concerned about the external supplier's ability to deliver the part on a timely basis.
C) It wants to make use of excess capacity in the buyer's division.
D) There is never a legitimate reason that justifies ordering a division to buy internally when it could source the product cheaper externally.
Correct Answer:
Verified
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