You Are a Rising Star in the Purchasing Department at Your

question 49

Multiple Choice

You are a rising star in the purchasing department at your company and you have recently been promoted to manager of business services procurement. As your title suggests, you will be responsible for purchasing business services for your firm. Required:
Which of the following statements is true regarding your new role?​

• A) ​You will be purchasing raw materials.
• B) ​You will be purchasing MRO supplies.
• C) ​You will be purchasing component parts.
• D) ​You will be purchasing janitorial services.
• E) ​You will be purchasing process materials.

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Definitions:

Maturity

The date on which a financial obligation must be repaid in full.

Zero-Coupon Bond

A debt security that does not pay interest but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.

Imputed Interest

The interest on a loan that the IRS assumes was paid for tax purposes, even if no actual interest payment was made.

Required Return

The smallest yield an investor aims to receive from an investment, factoring in its risk profile.