The situation in which a company favors a supplier that is also a customer for that company is termed as _____.

Question

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This situation is termed as reciprocity, which is a practice of giving preference to a supplier that also happens to be a customer. This creates a mutually beneficial relationship between the two companies. Cross-purchasing refers to buying from multiple suppliers to reduce dependency on a single supplier. Computing is not related to this concept, and direct selling refers to selling products directly to consumers without intermediaries.

The Situation in Which a Company Favors a Supplier That