What do suppliers desire from businesses?

Prepare for the SQA Higher Business Management Exam. Enhance your skills with dynamic flashcards and practice questions. Explore hints and explanations to ace your exam!

Suppliers typically desire continued business and timely payments from the businesses they serve. This reflects a stable and ongoing relationship that provides them with consistent revenue. When businesses pay on time, it ensures that suppliers can manage their cash flow effectively, which is critical for their operations. Timely payments also help build trust and foster a positive relationship between suppliers and businesses, encouraging suppliers to prioritize loyalty and service for those who maintain a good payment history.

In contrast, reducing prices of goods can create tension in the relationship, as suppliers need to cover their costs and make a profit. Regularly changing account terms can lead to confusion and complexity, potentially damaging the relationship. Lastly, while frequent feedback on performance can be valuable, it is not a primary concern for suppliers compared to the assurance of continued business and consistent payments. This desire for reliability and stability is fundamental in supplier-business relationships, making it the most accurate choice.

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