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?

Question

Answer

Reject the supplier because poor finances automatically disqualify candidates

Answer

Approve the supplier, but establish close monitoring and contingency plans

Answer

Choose a cheaper supplier because price outweighs financial stability

Answer

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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