Lucas Worked for an Old-School Business Owner

Multiple Choice

Lucas worked for an old-school business owner. When Lucas presented the idea of building relational exchanges with key vendor and buyers, the owner was skeptical at best. He told Lucas, "I'm not at all interested in having people feel good about business. It's not a party." Lucas then told him it could increase profits, and the owner took a new interest. Which of the following is NOT a way Lucas could demonstrate that relational exchanges would increase profits?

A) Lucas's firm could get the lowest price on the key materials they needed.
B) Lucas's firm could lower inventory costs with longer-term contracts with flexible deliveries.
C) Lucas's firm could reduce purchasing costs through fewer searches and negotiations.
D) Lucas's firm would not have to spend as much to test and examine in-bound materials.