Solved

What Legitimate Reason Might Management Have for Insisting That One

Question 78

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents