Organizational Buying Behavior Refers to

question 185

Multiple Choice

Organizational buying behavior refers to

• A) the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.
• B) the decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers.
• C) the determination of what to purchase and the quantity to purchase based upon derived demand.
• D) the determination of what to purchase and the quantity to purchase based upon the derived demand in the industry.
• E) the process that organizations use to purchase the raw materials and tools used in the manufacturing of a product.

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Definitions:

Straight-Line Depreciation

An approach for spreading out the cost of a material asset through its operational life in consistent annual payments.

Payback Period

The length of time it takes for an investment to generate enough cash flow to recover the initial outlay, used in capital budgeting to estimate the viability of projects.

Investment Project

A project undertaken by a business or individual involving the allocation of capital resources to increase future earnings.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, where the asset's cost is reduced equally over its useful life.