Answer: a. reduced lead times
Explanation:
Lead time in a process refers to the amount of time it takes from the process's initiation to its conclusion. In general in Business, the shorter the lead time of a process, the better for the business as it usually leads to higher productivity, output and revenue levels.
Same goes for the reduction of lead times in transaction with vendors. With a shorter lead time, the process of making goods available for sale would be less and thus the goods can be sold in the market quicker therefore reducing inventory levels.
Answer: completing the last sentence in question:
Sam uses price as a surrogate indicator of quality.
Explanation: From the question, Sam when making purchases, has a believe that the costlier goods posses more quality than other cheaper goods. Therefore he is indirectly taking price as a key indicator of quality or a replacement for quality.
A partnership offers the best <span>quality liability protection but higher taxes.
</span>Answer: A
