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The most probable reason behind the trust that suppliers have on Delicious Donuts Store is "legitimacy." Legitimacy refers to the credibility and legal standing of a business. In this case, Delicious Donuts Store maintaining a good payment record over the past 4 years shows that they are a legitimate and reliable business entity. Suppliers are likely to trust the store because of its history of fulfilling financial obligations and operating in a lawful manner.
Efficiency could also play a role in supplier trust. If Delicious Donuts Store has been efficient in managing its operations despite the recent cash crunch, suppliers may have confidence in its ability to effectively utilize the materials supplied on credit.
Transparency is another factor that can contribute to supplier trust. If Delicious Donuts Store is transparent in its financial dealings and communicates openly about its current situation, suppliers may feel more secure in extending credit terms.
While elasticity is not directly related to supplier trust in this context, it is important to understand that in economics, elasticity refers to the responsiveness of quantity demanded to changes in price, which is not applicable to the scenario described.
In summary, the most probable reason behind the trust that suppliers have on Delicious Donuts Store is its legitimacy, supported by its good payment record and history of operation.
