Which of the Following Statements About Buying Centers Is True

question 44

Multiple Choice

Which of the following statements about buying centers is true?

• A) The buying center is a fixed and formally identified unit within a buying organization.
• B) Roles in the buying center are specified in the organizational chart of a firm.
• C) The CEO of an organization is always the decision maker in a buying center.
• D) An individual's role in a buying center does not change with time.
• E) Some buying centers involve informal participants.

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Definitions:

Capital Goods

Long-term assets such as machinery, buildings, and equipment purchased by businesses to produce goods and services.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs, assuming full and efficient utilization of resources.

Opportunity Cost

The exclusion of favorable outcomes from different choices upon selecting one option.

Increasing Opportunity Cost

A scenario where choosing more of one option increasingly limits the ability to choose other options, demonstrating the trade-offs in resource allocation.