Sylvia owns a civil engineering consulting firm. Over the past several years, the bulk of her business has derived from a long term contract with the federal government. She learned today that her firm will not be awarded an extension of the contract, and thus her firm's work for the government client will come to an end within 30 days. The very negative impact of this decision on Sylvia's firm 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.

Question

Quizplus · Accepted Answer

The scenario presented shows that Sylvia's firm was heavily dependent upon the federal government contract, which led to a very negative impact on her business when the contract was not renewed. This is a reminder that relying too heavily upon powerful customers or contracts can be disadvantageous for an organization.

Sylvia Owns a Civil Engineering Consulting Firm