Which of the Following Statements About Business Buying Is False

question 36

Multiple Choice

Which of the following statements about business buying is false?

• A) Business marketers prefer not to sell to customers who place small orders.
• B) Business marketers must often sell their products in large quantities to make profits.
• C) Most business purchasing decisions are made by committee.
• D) Business purchases are usually made on the basis of contracts.
• E) Reciprocity influences purchasing agents to deal with all suppliers of a product.

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Definitions:

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee, typically through owning a large percentage of its stock.

Cost Method

An accounting method used to value an investment, based on the cost to acquire it plus any additional investments or deducting any reductions.

Impairment Loss

A reduction in the book value of an asset when its market value falls below its carrying amount on the balance sheet.

Straight Line Amortization

An approach to systematically allocate the cost of an intangible asset throughout its period of usefulness.