Just as There Are Different Inputs into an Organization's Decision

question 147

Essay

Just as there are different inputs into an organization's decision to make a major buy, so there is a similar situation that occurs within a family. Various members of an organization and of a family will take different roles depending upon the product being purchased. What are the two major
differences between how organizations and families make purchase decisions? (These differences are based on the roles members play.)

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Definitions:

Cash Payments

Transactions in which the purchaser pays for a good or service using physical currency or through immediate digital transfer of funds.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Junk Bonds

High-risk, high-interest bonds issued by companies or entities with lower credit ratings, considered to be below investment grade.

Interest Rates

The cost of borrowing money or the return earned from lending money, usually expressed as a percentage.