The Primary Reason Companies Have Placed an Emphasis on Buying

question 155

Multiple Choice

The primary reason companies have placed an emphasis on buying from minority- and women-owned suppliers and vendors is

• A) new federal government regulations require it.
• B) they can help a firm meet or exceed its objectives in sales, profits, or customer satisfaction.
• C) it is the socially responsible action expected of leading organizations.
• D) it can attract new target markets.
• E) these companies will work harder for less money.

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Definitions:

Infinitely Price Elastic

Describes a situation where the quantity demanded or supplied changes by an unlimited amount in response to any change in price.

Total Revenues

The overall amount of money generated by a business from its normal business operations.

Total Costs

The complete amount of money spent by a business for producing or acquiring goods or services, including both fixed and variable costs.

Economic Profits

Economic profits are the financial gains that exceed the total costs of production, including both explicit and opportunity costs, indicating an above-normal return.