$4,775 in mystic interest
Interest from Four Rivers $3,728
better offer (Mystic)
How does compound interest work?
By starting early, students can benefit from the "compound interest" magic. The interest you receive is referred to as compound interest. Using simple math, you can see how this works: if you have $100 and it earns 5% interest annually, you will have $105 at the end of the first year. You'll have $110.25 at the conclusion of the second year. You received $5 on the initial $100 deposit in addition to $0.25 on the $5 in interest, for a total of $5. Initially, 25 cents might not seem like much, but it soon adds up.
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the stockholders' equity section on the december 31 balance sheet of chemfast corporation reported the following amounts: contributed capital preferred stock (par $20; authorized 10,000 shares, ? issued, of which 1,000 shares are held as treasury stock) $ 112,000 additional paid-in capital, preferred 16,520 common stock (no-par; authorized 20,000 shares, issued and outstanding 6,400 shares) 665,600 retained earnings 34,000 treasury stock, 1,000 preferred shares at cost (9,700) assume that no shares of treasury stock have been sold in the past.
1)The number of shares of preferred stock issued
$102,000/ $20 = 5100 shares
2. The number of shares of preferred stock outstanding
No. of issued shares - No. in treasury stock = 5100 - 1000 = 4100 shares
3. The average issue price of the preferred stock
($102,000 + $13,770)/5100 = $22.70 per share
4. The average issue price of the common stock
$584,100/5900 = $99 per share
5. The treasury stock transaction decreased stockholders' equity by
$9450
6. The treasury stock cost
$9450/1000 = $9.45 per share
7. Total stockholders' equity
= preferred stock + Additional Paid-in Capital, preferred + common stock + retained earnings - Treasury Stock
= 102000+13770+584100+29000-9450
=719,420
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in which type of distribution channel is it more likely for the consumer to end up paying a higher price for the final product?
Long type of distribution channel is it more likely for the consumer to end up paying a higher price for the final product.
What is the best distribution channel for a new product?The most effective distribution channel a company has at its disposal is e-commerce. It significantly reduces the need for you to use various warehouses, distributors, and brokers to connect with retailers and sell your product line.
A marketing channel in sales is a path that connects the producer and the consumer. Retailers, wholesalers, or a combination of the two may make up this group. Direct marketing, which includes telemarketing, the Internet, and postal orders, is the most popular method.
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When raw material acquisitions were recorded, the improper unit price was included in the perpetual inventory master file. Therefore, the inventory valuation was misstated because the physical inventory was priced by referring to the perpetual records.
Examine appropriate unit price of raw material in master file with perpetual records.
The incorrect unit price was recorded when purchasing raw materials, and it was stored in the perpetual inventory master file. The physical inventory was priced using the permanent records, hence the inventory valuation was inaccurate.
With computerised point-of-sale systems, perpetual inventory is a form of accounting that continuously records inventory changes in real time, doing away with the necessity for physical inventory inspections. With fast reporting of the amount of inventory on hand and an accurate reflection of the quantity of goods in stock, it offers a highly detailed perspective of changes in inventory.
When using this approach, a business does not make any effort to maintain thorough records of the products it has on hand; instead, purchases are noted as debits to the inventory database. The price of things is actually high.
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question 3 as a project manager, you believe limited access to the necessary people and equipment could cause the project to go past deadline. which organizational topic could you discuss with your key stakeholder to get the project back on track?
Option d.resource availablity. could be discussed with key stakeholder to get the project back on track.
The required details about stakeholder is mentioned in below paragraph.
Stakeholders may be inner or outside to an organization. Internal stakeholders are human beings whose hobby in a corporation comes thru an instantaneous relationship, which includes employment, ownership, or investment.
External stakeholders are individuals who do now no longer without delay paintings with a corporation however are affected one way or the other via way of means of the moves and results of the business. Suppliers, creditors, and public agencies are all taken into consideration outside stakeholders.A stakeholder is a celebration that has an hobby in a corporation and may both have an effect on or be suffering from the business. The number one stakeholders in a regular company are its investors, employees, customers, and suppliers.
(COMPLETE QUESTION)
As a project manager, you believe limited access to the necessary people and equipment could cause the project to go past deadline. which organizational topic could you discuss with your key stakeholder to get the project back on track?
a.stakeholder availablity
b.meeting availablity
c.report availablity
d.resource availablity.
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if consumers are willing to pay a slightly higher price for this firm's product at any given quantity, so that there is a small upward shift in demand part 4 a. the profit maximizing price will not change. b. the profit maximizing output level will not change. c. neither the profit maximizing price nor output will change. d. both the profit maximizing price and output will change.
if customers are willing to pay a little bit more for this company's product at any given quantity, there will be a minor increase in demand. if customers are willing to pay a little bit more for this company's product at any given quantity, there will be a minor increase in demand.
What is demand?Demand is just a consumer's desire to buy products and services immediately and to pay the price associated with them. Demand can be defined as the number of things that consumers are prepared and willing to purchase at various prices within a specific time frame.
The law of demand asserts that all other things being equal (centers Paribus), the relationship between the price and quantity demanded of any good or service is inverse.
The first slice of pizza that a customer purchases, when they are hungry, will be the most useful or beneficial. The utility decreases and the consumer is more satisfied with each subsequent slice.
Therefore, Thus option (A) is correct.
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a balanced scorecard typically includes: a. all of the choices are correct b. financial measures c. internal processes measures d. customer satisfaction measures
Financial measurements, customer happiness measures, and internal processes measures are frequently included on a balanced scorecard. Here option A is the correct answer.
A balanced scorecard helps firms identify and improve their internal processes in order to improve their external results. It is a strategic management performance statistic.
It assesses prior performance data and gives firms suggestions on how to go forward with better selections. The use of a scorecard has several advantages. The ability to compile information into a single report is one of the most significant benefits since it may help you save time, money, and resources.
Along with collecting financial data, it also enables businesses to monitor their performance in terms of quality and customer service. Scorecards help businesses identify and eliminate inefficiencies.
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the law of diminishing marginal returns states that, once production goes to a sufficiently large quantity, variable input(s) will exhibit diminishing marginal productivity. this phenomenon is the cause of marginal product and marginal cost.
The law of diminishing marginal returns states that when an advantage is gained in a factor of production, the marginal productivity will typically diminish as production increases. This means that the cost advantage usually diminishes for each additional unit of output produced.
Diminishing marginal productivity is often recognized in its most straightforward form when a single input variable exhibits a drop in input cost. For instance, a reduction in labor expenses throughout the car-manufacturing process would result in slight increases in profitability per vehicle. However, the law of declining marginal productivity states that managers will see a diminishing increase in productivity for every unit of output. This typically results in declining profitability per automobile.
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an example of a provider of exceptional customer service is l.l. bean, inc. one of its employees actually drove 500 miles from maine to new york to deliver a canoe to a customer who was leaving on a trip. the employee was able to perform this task with the support of l.l. bean because the catalog retailer believes strongly in:
As one of the employees actually drove 500 miles from Maine to New York to deliver a canoe to a customer who was leaving on a trip, the employee was able to perform this task with the support of l.l. bean because the catalog retailer believes strongly in employee empowerment.
What is an employee empowerment?An employee empowerment refers to a management philosophy that emphasizes the importance of allowing the employees to make their independent decisions and act on them.
The empowerment can include having voice in process improvement, managing new systems and tactics and running smaller departments with less oversight from higher-level management.
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Which project variable is defined as the degree to which the project meets the needs of its users?.
The degree to which the project satisfies its users' needs is considered the project's quality.
What is project variable?A person, place, thing, or phenomenon that you are attempting to quantify in any way is simply referred to as a variable in research. Looking at what the words themselves tell about the variable you're using is the easiest way to differentiate here between dependent and independent variable. Project variables serve as placeholders, with values selected when a particular Deployment Profile is created. According to Defining Environmental Constants, project variables can be literals or environmental constants.
How do you identify variables in a project topic?The hypothesis or research question contains variables. You can see how variables function in a research study in a hypothesis. Look for elements in your research question or hypothesis that affect, manipulate, or cause a response to be able to identify independent research variables.
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suppose the unemployed are mostly construction workers by profession. which government spending project will most effectively target unused labor resources?
Government expenditure initiatives that target underused labor resources will be most successful if they include Medicare and Social Security taxes.
What is a worker who is unemployed?If a person satisfies all of the requirements listed below, they are considered unemployed: They do not fit the aforementioned description of "employed," they are open to employment, and. Sometime during the previous four weeks, they have made targeted efforts to locate job.
What effect does unemployment have on the economy?A high rate of unemployment has a variety of effects on the economy. Unemployment may result in increased payments from the federal and state government for services such as food assistance because unemployed persons typically spend less and may accumulate more debt.
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liability insurance serves all of the following purposes except . question 61 options: covers injury claims from employees not covered by workers compensation insurance. covers liability arising from professional services rendered by the contractor to the owner. covers injury to persons (not employees) or damage to property of third parties caused by an act of omission or commission by the contractor. cover employees in the event of job loss.
The following are all uses for liability insurance, with the exception of providing protection for workers in the case of job loss. Here option D is the correct answer.
Liability insurance protects against claims of loss or damage for which the policyholder may be compelled to compensate another party. The coverage covers damages brought on by legally recognized negligent acts or omissions that harm another person's person, property, or legal interests.
Your industrial setting's liability insurance shields you from any financial responsibilities brought on by any mishaps that take place there. This comprehensive liability insurance is a need for businesses to safeguard themselves against claims of property damage or bodily harm resulting from their operations.
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some students want to order shirts with their school logo. one company charges $9.65 per shirt plus a set up fee of $43. another company charges $8.40 per shirt plus a set up fee of $58. what is the number of shirts ordered and the amount when the two companies charge the same thing?
Answer:
Explanation:
That is the answer
the risk-free rate is 2.7 percent and the market expected return is 12.4 percent. what is the expected return of a stock that has a beta of .91?
The expected return of a stock that has a beta of .91 is 13.98%
What is expected return and risk?Risk is the risk that the real return will be different from the expected return, i.e., the real return could be 30% or 10% instead of the projected return of 20%. Investors want a return known as the risk-free return as payment for their risk-free investment. It is impossible to guarantee expected returns.
Given:
risk free rate = 2.7%
beta= 0.91
market risk premium/return on market = 12.4 %
Hence, the formula for expected return is:
ER = RFR + (B × EMR)
where;
ER = expected return
RFR = risk free rate
B = beta
EMR = expected market return
ER = (2.7) + (0.91 × 12.4)
ER = 2.7 + 11.28
ER = 17.78
The expected return = 13.98 percent
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you're the marketing manager for an online sporting goods store and have been tasked to optimize the company's display campaigns before increasing their budgets. what should you do to achieve this goal?
Display campaigns enable you to reach a relevant audience with visually compelling advertising as they browse millions of websites, apps, and -owned properties (such as ) to achieve your marketing objectives. One of the campaign types you have access to in Ads is a display campaign.
What is marketing?Marketing is the process of investigating, developing, and providing value in terms of products and services to fulfill the needs of a target market. Potentially includes the selection of a target audience; the selection of certain traits or themes to emphasize in advertising;
Marketing is the activity of investigating, generating, and supplying value in the form of goods and services to fulfill the demands of a target market, potentially including the identification of a target audience; the selection of specific traits or themes to stress in advertising.
Display advertising promotes goods and services by using text, images, or videos on websites owned by other people. Display advertising comes in a variety of forms. Display advertising includes, for example, banner adverts. Leaderboard advertisements on desktop and mobile devices are also.
Therefore, achieve your marketing objectives. One of the campaign
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The market mechanism might leave some people with too little income and others with too much. The government uses taxes and transfers to redistribute income more fairly.
Program Recipient Group Number of Recipients Value of Transfers
Social Security Retired and disabled workers 67 millions $1,002 billion
Medicare Individuals over age 65 59 millions $ 620 billion
Medicaid Medically needy individuals 75 millions $ 400 billion
Unemployment Compensation Unemployed workers 6 millions $ 30 billion
Calculate the average benefit a recipient of Medicaid receives. Instructions: Round your response to the nearest dollar. $ 1500
Taxes and transfers are used by the government to more equitably share revenue. A Medicaid participant typically receives $1500 in benefits.
What distinguishes Medicare and Medicaid?Medicare is a health insurance program for seniors, disabled individuals under 65, and dialysis patients. Medicaid is a program that provides financial aid for low-income patients' medical costs.
Who covers Medicaid costs?The federal government and the states share funding for the Medicaid program. The amount that the federal government reimburses states for program costs is known as the Federal Medical Assistance Percentage, or FMAP (FMAP).
Who profits from Medicaid the most?Spending on Medicaid is mostly targeted at the elderly and those with disabilities. Despite accounting for over two-thirds of Medicaid spending, seniors and individuals with disabilities make up one in four beneficiaries, which reflects the high per-enrollee expenses for both acute and long-term care.
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the concept of identifying customer needs; understanding and influencing customer behavior through ongoing communication strategies in an effort to acquire, retain, and satisfy the customer is known as
Customer relationship management is the concept of identifying customer needs, understanding and influencing customer behavior through ongoing communication strategies in order to acquire, retain, and satisfy the customer.
The study of individuals, groups, or organizations, as well as all activities associated with the purchase, use, and disposal of goods and services, is known as consumer behavior.
Businesses that comprehend how consumers think, feel, and make decisions are better able to market their goods and services. This assists marketer in forecasting how their customers will behave, which aids in the marketing of existing products and services.
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explain how the tests of controls and substantive tests of transactions affect the tests of details of balances.
Both substantive audit testing and compliance audit testing are included in an audit that is carried out in accordance with generally accepted auditing standards (GAAS). Compliance audit testing entails evaluating the efficiency of internal controls in operation within the audit client.
In the working papers of an audit that is carried out in accordance with generally accepted auditing standards, it is essential for the auditor to comprehend and record the nature, duration, and extent of substantive audit testings.
The purpose of substantive tests of transactions is to substantively verify the transactions' dollar amounts.Audit tests that substantiate an account's ending balance are known as substantive tests of balances.
What are real checks and balances?
The phase of an audit known as substantive testing involves the auditor collecting samples to identify any material errors in the client's accounting records or other information.The decision that a company's financial records are complete, relevant, and accurate must be supported by this evidence.
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the term ""moral hazard"" describes increases in risky behavior resulting from efforts to make that behavior safer. how does the concept of moral hazard apply to deposit insurance and other bank regulations?
In the case of deposit insurance, ethical risk directs insured firms' desire for increased risk-taking, which might occur when depositors and various creditors are—or believe they are—protected from failures.
What banking laws are intended to lessen the moral hazard issues brought on by deposit insurance?Minimum capital requirements and restrictions on holding risky assets are two examples of bank laws intended to lessen moral hazard issues brought on by deposit insurance. The amount of capital a bank must hold in order to be permitted to function is referred to as the minimum capital requirement.
How does moral hazard result from deposit insurance?Moral hazard occurs when the availability of insurance lessens the incentives for savers to keep an eye on the security of their investments. Depositors stop keeping tabs on bankers' actions and stop making the effort to transfer money from bad institutions to good ones.
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agile project management works well with projects that take an iterative approach. what does this mean? select all that apply.
Iterative project management is compatible with agile project management. Why does this matter? Please check all that apply.
What does it mean to use an iterative approach in Agile Project Management?An iterative method of project management is called agile project management. A project advances in brief performance cycles that encompass planning, testing, development, and outcomes evaluation due to the iterative nature of the process.
What does Agile's term "iterative" mean?A process that is iterative advances through continual improvement. A system is first attempted by a development team, which is aware of its shortcomings in some (perhaps many) areas. The team then makes those adjustments again until the end result is satisfactory.
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Iterative project management is compatible with agile project management. Feedback is used to continuously enhance project deliverables. The group works in a variety of brief time slots. Throughout the course of the project's lifecycle, project processes are frequently repeated.
What does it mean to use an iterative approach in Agile Project Management?
An iterative method of project management is called agile project management. A project advances in brief performance cycles that encompass planning, testing, development, and outcomes evaluation due to the iterative nature of the process.
What does Agile's term "iterative" mean?A process that is iterative advances through continual improvement. A system is first attempted by a development team, which is aware of its shortcomings in some (perhaps many) areas. The team then makes those adjustments again until the end result is satisfactory.
The complete question is:
Agile project management works well with projects that take an iterative approach. What does this mean? Select all that apply.
a. Project deliverables improve continuously based on feedback
b. The team operates within many short blocks of time
c. The project will take longer to complete
d. Project processes are repeated many times during the life cycle of the project
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compute the price of a $1,000 par value, 6 percent (semi-annual payment) coupon bond with 25 years remaining until maturity assuming that the bond's yield to maturity is 20 percent?
The current price of the bond is 913.91 on maturity.
What is current price?The most trustworthy indicator of a security's present value is its current price, which is the most recent selling price of any stock, currency, good, or precious metal that is traded on an exchange. Market value and current price are synonyms. It is most recent trading price for share of stock or other security. In a free market, the price at the moment acts as a benchmark. For a subsequent transaction involving that security, it demonstrates the price a buyer would be prepared to pay and the price a seller would accept. For bonds, the current price is frequently stated as 10% of par, or face value.
N: 6 I/Y: 10.4 PV: ? PMT: 84 FV: 1,000
8.4% *1000= PMT
PV: 913.906418= 913.91
Current Bond Price: 913.91
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what major considerations should the auditor consider in determining how extensive the review of subsequent events should be?.
The following factors should be taken into account by the auditor when deciding the scope of the subsequent events review: The company's financial stability and profits consistency, The efficiency of internal controls within the company.
What main factors should the auditor take into account when deciding how thorough the evaluation of later occurrences should be?The interval between the balance sheet date and the audit's conclusionStaff changes in important positionsAdditionally, PCAOB mandates that auditors enquire about changes to internal control over financial reporting that have occurred since the end of the fiscal quarter and may have a major impact
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your supervisor, ashby, wants you to make an appointment for her to meet with a friend of yours, kevin. she wants to make a sales pitch to your friend, but you and your friend have an agreement not to mix business with your friendship. ashby won’t take no for an answer. she’s threatened to withhold your promotion if you don’t make the appointment. which political behavior is ashby using?
Coercion is used by Ashby as she threatened to withhold your promotion if you don’t make the appointment.
What is Coercion?
The Indian Contract Act's Section 15 defines coercion as "committing or threatening to commit any act prohibited by the Indian Penal Code, or unlawfully detaining, or threatening to detain, any property, to the prejudice of any person whatsoever, with the intention of causing any person to enter into an agreement."
For instance, if B refuses to sell his house to A for 5 lakh rupees, A may threaten to harm him. Here, even if B sells the house to A, the agreement won't be enforceable because B's cooperation was coerced. Now, coercion has the result of rendering the contract void.
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capital expenditure and depreciation share all of the following characteristics except group of answer choices use in the calculation of fcf represent actual cash outflows found on the cash flow statement included in the calculation of property, plant and equipment
Free cash flow (FCF) represents the cash that a corporation generates after accounting for money outflows to support operations and keep its capital assets.
In other words, free money go with the flow is the money left over after a company will pay for its working fees (OpEx) and capital costs (CapEx).
Why is it called free cash flow?#3 Free Cash Flow (FCF)
FCF gets its identify from the truth that it's the quantity of money glide “free” (available) for discretionary spending via management/shareholders. For example, even even though a company has working cash flow of $50 million, it nevertheless has to make investments $10million each yr in maintaining its capital assets.
Why is free money drift important?Free cash drift is important to buyers and commercial enterprise analysts because it indicates how a whole lot money your organisation has at its disposal. They frequently verify your free money glide to decide whether your company has adequate cash to repay debts, issue dividends and purchase lower back shares.
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https://brainly.com/question/735261#SPJ4how does the cost of financial capital influence innovative research and development activities in a competitive market?
Because R&D initiatives are expected to yield a greater rate of return, businesses seek a huge quantity at a cheap cost.
What are the necessary finances?To calculate your financial requirement, divide your anticipated family commitment by two and the cost of attendance (COA) for even a school (EFC). Although COA varies from university to university, your EFC does not change no matter which school you attend.
Which four necessities in terms of financial are there?For the majority of Americans, job is the first step toward financial stability. People need revenue to meet expenditures and for budgetary considerations. They also must invest for the future, save cash for a rainy morning, borrow money to acquire assets, plus insure yourself against shocks.
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joe foxhunter makes unique silver jewelry. loyal customers drive from miles around to buy the jewelry, which is sold only in his workshop. this jewelry is a specialty product.
Unique silver jewelry is created by Joe Foxhunter. Loyal clients travel great distances to purchase the jewelry from his studio, which is the only place it is offered. This jewelry is a unique item. This statement is true
A sizable segment of consumers is willing to make additional purchase efforts for specialty items because they have especially distinctive features and brand identifications. Examples include certain brands of upscale goods, high-end automobiles, gear for professional photographers, and designer apparel. A specialty product is a particular consumer commodity that is sold to customers in a small number of retail establishments and has a finite supply. These things are often high-end and cost more than other typical items that customers purchase more regularly.
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a bond with 20 years until maturity has a coupon rate of 7.4 percent and a yield to maturity of 7.5 percent. what is the price of the bond?
$847.08 is the price of the bond.
How do you calculate the price of the bond?Assume per value of bond (P) = $1,000
Annual coupon rate = 7.4%
Semi-annual coupon rate = 6%
Semi-annual coupon of bond (C)= 6% of $1,000 = $60
Number of years to maturity = 20
Number of coupon payments till maturity (n) = 20
Annual YTM = 7.5%
Semi-annual YTM (r) = 7.5%
Market Price of Bond
=C×1−(1+r)−nr+P(1+r)n
=$60×1−(1+0.075)−200.075+$1,000(1+0.075)20
=$847.08
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$847.08 is the price of the bond.
How do you calculate the price of the bond?Assume per value of bond (P) = $1,000
Annual coupon rate = 7.4%
Semi-annual coupon rate = 6%
Semi-annual coupon of bond (C)= 6% of $1,000 = $60
Number of years to maturity = 20
Number of coupon payments till maturity (n) = 20
Annual YTM = 7.5%
Semi-annual YTM (r) = 7.5%
Market Price of Bond
=C×1−(1+r)−nr+P(1+r)n
=$60×1−(1+0.075)−200.075+$1,000(1+0.075)20
=$847.08
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diminishing marginal benefit: is not important in determining a consumer's purchase decision. is when buying an additional item yields a smaller marginal benefit than the previous item. is when buying an additional item yields a larger marginal benefit than the previous item. is when consumers do not follow the rational rule.
Diminishing marginal benefit means when one good is consumed continuously then marginal benefit derived from each successive unit keeps on decreasing. It means marginal benefit derived is less than the previous item.
The "law of Diminishing Marginal " states that for any good or carrier, the marginal utility of that good or service decreases as the quantity of the coolest will increase, ceteris paribus. In different words, total utility will increase more and more slowly as the amount consumed will increase.
Diminishing marginal software refers back to the phenomenon that every extra unit of benefit leads to an ever-smaller increase in subjective value. as an example, three bites of candy are better than bites, however the 20th chew does no longer add plenty to the revel in past the nineteenth (and will even make it worse).
The law of diminishing marginal application says that the marginal software from each additional unit declines as intake will increase.
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a four-way breakdown (decomposition) of the total overhead variance includes a variance. multiple select question. production volume (denominator) fixed overhead budget (spending) variable overhead efficiency variable overhead spending fixed overhead efficiency
Burden cost variance refers to the difference between the actual burden cost and the applied burden cost. You can calculate burden cost variance only if you know the actual burden cost for the period. Overhead costs are applied based on given rates and cost drivers.
Variable overhead variance is favorable when the actual cost of an indirect material (such as paint or consumables such as oil or grease) is less than the standard or budgeted variable overhead cost. It's not good if the actual cost is higher than the budgeted cost.
Overhead costs, often referred to as overhead or operating costs, refer to costs associated with running a business that cannot be related to the creation or manufacture of products or services. They are the costs a company incurs to stay in business regardless of its level of success.
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Sea Rovers, Inc. contracted to sell 1,000 pounds of shrimp to the Seafood Shack withdelivery on June 1. On May 1 Sea Rovers advised the Seafood Shack that it would not be able todeliver the shrimp. The Seafood Shack _____.
can sue Sea Rovers immediately for breach of contract
must wait until June 1 to see if Sea Rovers will perform before suing for breach of contract
cannot sue Sea Rovers because Sea Rovers gave adequate notice
must wait until actual damages are determined before it can sue
The Seafood Shack can sue Sea Rovers immediately for breach of contract.
A breach of contract happens when one party in an official understanding neglects to convey as per the provisions of the understanding.
A breach of contract can occur in both a composed contract and an oral contract.
The gatherings engaged with a breach of contract might determine the issue among themselves or in an official courtroom.
There are various kinds of contract breaches, including a minor or material breach and a genuine or expectant breach.
A breach of contract isn't viewed as a wrongdoing or even misdeed and seldom brings about extra monetary compensation.
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sole sourcing is a process for developing relationships with many suppliers for long contract terms. true or false
As strategic partnerships, sole sourcing agreements are increasingly turning suppliers into de facto subsidiaries of their largest clients.
Overview of Sourcing
Sourcing, as it relates to procurement, is the process of locating, evaluating, and collaborating with suppliers to find cost savings and the best value for goods and services at a price point and under circumstances that leave the necessary margin to have a positive effect on the bottom line of the company. The sourcing process is carried out using a tendering process and applied at tactical and strategic levels in order to gain a competitive advantage. The objective is to find the best suppliers at the most competitive prices in order to create unique value.
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