Answer to Question 1
Suppliers contribute to the organization by providing reliable raw materials and component parts that allow the organization to reduce uncertainty in its technical or production operations and thus reduce production costs. Suppliers have a direct effect on the organization's efficiency and an indirect effect on its ability to attract customers. An organization that has high-quality inputs can make high-quality products and attract customers. In turn, as demand for its products increases, the organization demands greater quantities of high-quality inputs from its suppliers.
Answer to Question 2
Answer: B
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