Which of the Following Statements About the Product and Supplier

question 48

Multiple Choice

Which of the following statements about the product and supplier selection stage of the business buying decision process is true?

• A)Price is the only factor businesses consider before making a purchase decision.
• B)Price and warranty are the only two factors businesses consider before making a purchase decision.
• C)Even companies that have adopted a total quality management approach consider price to be the most important determinant of who to buy from.
• D)Before making a purchase decision,many businesses consider quality,reliability,durability,after- the- sale service,as well as price.
• E)Because after- the- sale service is a negotiation point,it is not considered at this stage of the business buying decision process.

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Definitions:

Operating Activities

Operating activities involve the primary revenue-generating activities of a business, such as sales and delivery of goods/services, and are reflected in the cash flow statement.

Credit Sales

Transactions in which goods or services are provided to a customer with the agreement that payment will be made at a future date.

Collections

The process of pursuing payments of debts owed by individuals or businesses, often managed by accounts receivable departments or collection agencies.

Noncash Financing

Activities that increase long-term liabilities or equity but do not involve the immediate receipt or payment of cash, such as issuing stock or converting debt to equity.