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If an enterprise depends on only one supplier, what is the greatest strategic risk?

Answer and explanation

Correct answer: The entire operation may be affected if supply stops

Single-supplier dependence creates concentration risk. A supplier’s closure, delay, shortage, price increase, or quality problem can interrupt production and customer service. Identifying alternative suppliers, maintaining suitable stock, and negotiating reliable terms can reduce this vulnerability. The other options do not follow from supplier dependence.

Related tags

Supplier RiskRisk ManagementIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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