Which of the Following Is Not a Reason That Purchasers

question 56

Multiple Choice

Which of the following is not a reason that purchasers are adopting a more proactive and aggressive role in the procurement process?

• A)There are myriad inefficiencies associated with suppliers initiating marketing efforts toward purchasers.
• B)They are achieving a competitive advantage in the supply chain.
• C)An excess number of suppliers currently exists.
• D)Purchasers may be aware of important benefits that are not known to the supplier.

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Definitions:

Cash Equivalent

Short-term, highly liquid investments that can be easily converted to a known amount of cash.

Liquid Asset

Assets that can be quickly and easily converted into cash without significant loss in value.

Noncash Investing

Transactions involved in investing activities that do not involve immediate cash flow, such as exchanging one asset for another.

Financing Activity

Activities that result in changes in the size and composition of the equity capital and borrowings of the company.