Which of the Following Is NOT a Difference Between In-House

Multiple Choice

Which of the following is NOT a difference between in-house and independent suppliers?

A) In-house suppliers have much less incentive to look for new ways to reduce operating costs or increase component quality.
B) Independent suppliers can pass on cost increases in the form of higher transfer prices.
C) Independent suppliers constantly need to increase their efficiency to protect their competitive advantage.
D) In-house suppliers do not face competition and the resulting rising cost structure that reduces a company's profitability.
E) When company-owned suppliers develop a higher cost structure than those of independent suppliers, vertical integration can be a major disadvantage.