Businesses Follow a Defined Buying Decision Process in Order to Ensure

question 121

Multiple Choice

Businesses follow a defined buying decision process in order to ensure the goods and services they purchase will meet their organization's needs. The process has multiple stages; in one of the stages, the business will consider a proposal usually given to them in writing by a supplier. This stage may include competitive bidding depending on the company. This proposal consideration takes place in which of the following stages of the business buying decision process?

• A) First stage
• B) Seventh stage
• C) Third stage
• D) Fourth stage

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Definitions:

Moral Hazard

A situation in insurance and economics where one party is more likely to take risks because they do not bear the full consequences of their actions, often due to asymmetric information.

Transaction

An exchange or transfer of goods, services, or funds between two or more parties.

Benefit

An advantage or positive outcome gained from something, often used in the context of employment perks or features of a product or service.

Moral Hazard

Moral hazard occurs when one party in a transaction takes on more risk because they know that someone else will bear the cost of those risks.