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In general terms it is a true statement. The higher the operating leverage, the greater the potential danger for a forecasting error. As such, entering long lasting contracts with suppliers, especially key suppliers, is a way to reduce risk since there is a share of responsibility if operations do not perform as expected.
Moreover, entering into long term contracts, a firm may benefit from a supplier by having better pricing, improved payment terms, more accurate deliveries of raw materials and superior treatment as a customer.
agree with the answers ..................................................
agree with expert answers above
True as long as there is sufficient future demand at current prices.
هل تحتاج لمساعدة في كتابة سيرة ذاتية تحتوي على الكلمات الدلالية التي يبحث عنها أصحاب العمل؟