Because Orders in Organizational Buying Are Typically Much Larger Than

question 167

Multiple Choice

Because orders in organizational buying are typically much larger than in consumer buying, buyers must often ________ when the order is above a specific amount, such as $5,000.

• A) pay estimated sales taxes in advance
• B) move up the time required to execute a purchase agreement
• C) get competitive bids from at least three prospective suppliers
• D) forgo the purchase because senior management is unlikely to approve it
• E) create separate orders in amounts less than that the threshold

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A company or entity that provides insurance policies to protect against financial losses.

Deductible

A fixed dollar amount that must be paid by the insured before additional expenses are covered by an insurer.

Liability Insurance

A type of insurance that covers injuries caused by the insured or injuries that occurred on the insured’s property.