An automotive assembler in Gqeberha conducts financial-ratio analyses on all potential suppliers. One innovative supplier demonstrates high technical capability but exhibits weak liquidity and a substantial debt load. Based on the supplier evaluation criteria discussed in your prescribed study material, what would be the most appropriate action?

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Reject the supplier because poor finances automatically disqualify candidates

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Approve the supplier, but establish close monitoring and contingency plans

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Choose a cheaper supplier because price outweighs financial stability

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Proceed without concern since innovation offsets financial weakness

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An automotive assembler in Gqeberha conducts financial-ratio analyses on all pot...

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