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A business experiences rapidly growing demand but depends on a single supplier. Which strategy would reduce risk?

Answer and explanation

Correct answer: Develop alternative reliable suppliers

A single supplier creates concentration risk: delay, price increases, quality problems, or closure at that supplier can stop the whole business. Developing and evaluating alternative suppliers provides resilience and bargaining power. The alternatives should still meet quality and delivery standards. Increasing dependence or stopping checks would make the supply risk worse, so B is correct.

Related tags

Supplier-RiskSupply-ChainIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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