In Organizations, the Buying Function Involves Gathering and Screening Information

question 86

Multiple Choice

In organizations, the buying function involves gathering and screening information about products and services, prices, and suppliers, which are known as

• A) agents.
• B) procurement sources.
• C) resellers.
• D) shops.
• E) vendors.

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Definitions:

Investment Proposal

A formal suggestion for investing capital, typically encompassing projected costs, benefits, risks, and returns.

Net Present Value

A method used to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period of time.

Straight-Line Method

A method of calculating depreciation of an asset by evenly spreading its cost over its useful life.

Net Present Value

A financial measure that determines the variance between the current worth of cash coming in and the current worth of cash going out over a specified timeframe.