The New, More Strategically Oriented Purchasing Departments Have a Mission

question 96

Multiple Choice

The new, more strategically oriented purchasing departments have a mission. Which of the following most accurately describes that mission?

• A) Make the most profit possible and remain independent of entanglements.
• B) Approach every purchasing opportunity as means to create interdependency.
• C) Seek the best value from fewer and better suppliers.
• D) Outsource the supply function.
• E) Abandon all strategies except for systems selling and buying.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with fixed dividends.

Annual Return

The percentage gain or loss on an investment over a one-year period, reflecting the compound rate of return.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional stock.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and typically dividends that are paid out before those to common stockholders.