Which of the Following Contentions About Organization-Specific Factors Affecting Purchases

question 61

Multiple Choice

Which of the following contentions about organization-specific factors affecting purchases is true?

• A) For manufacturing companies, the production department always controls purchasing decisions.
• B) Privately owned organizations that are highly centralized are more likely to use joint decision making for all purchases other than straight rebuys.
• C) The size of an organization does not affect its purchase decisions.
• D) A large-scale public decentralized corporation will tend to have greater joint decision making.

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Definitions:

Autonomous Spending

Expenditures in an economy that do not vary with the level of income or production, such as government spending or investment.

Marginal Propensity

The ratio of the change in an aggregate economic quantity to an adjustment in some causal variable, particularly the change in consumption resulting from a change in income.

U.S. Price Level

A measure of the average prices of goods and services across the United States economy, indicating the purchasing power of money in the U.S.

Net Exports

The value of a country's total exports minus its total imports, representing the net trade of goods and services with foreign countries.