Roberto Owns a Janitorial Service Company

Multiple Choice

Roberto owns a janitorial service company. Over the past five years, the bulk of his business, about 80 percent, has derived from a long-term service contract with the federal government. He learned today that his company will not be awarded an extension of the contract, and thus his company's work for the government client must cease within 30 days. The very negative impact of this decision on Roberto's company is a reminder that

A) contracting with the federal government is not profitable over the long term.
B) a firm that does not achieve affirmative action goals must implement a corrective action plan.
C) government clients cannot be relied upon to be good business partners.
D) long-term services contracts are not good for business.
E) an organization is at a disadvantage if it depends too heavily upon powerful customers.