A relationship between a firm and its supplier where the supplier agrees to meet the firms' quality standards and the firm enters into a long-term purchasing agreement with the supplier is known as
A)outsourcing.
B)vertical integration.
C)partnering.
D)conformance.

Question

Quizplus · Accepted Answer

This describes a partnering relationship, where the firm and supplier work together for mutual benefit and long-term success. The supplier agrees to meet quality standards and the firm commits to a long-term purchasing relationship. Outsourcing refers to transferring business operations to an outside provider, while vertical integration involves owning multiple stages of the supply chain. Conformance simply refers to meeting established standards or specifications.

A Relationship Between a Firm and Its Supplier Where the Supplier