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An entrepreneur has two suppliers. The cheaper one is often late while the expensive one is reliable. What should guide the decision?

Answer and explanation

Correct answer: Total cost and supply reliability

The quoted purchase price is only one part of the decision. Frequent delays may cause missed sales, idle workers, emergency transport or dissatisfied customers, creating additional costs. The entrepreneur should compare the total cost of each option together with delivery reliability and quality. Popularity or friendship is not a dependable business criterion, and choosing only the cheaper price may be misleading.

Related tags

Supplier-SelectionTotal-CostReliabilityQualities And Functions Of An EntrepreneurEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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