The Position Responsible for Negotiating a Volume Discount Is the

question 56

Multiple Choice

The position responsible for negotiating a volume discount is the

• A)purchasing agent.
• B)production manager.
• C)accounts payable supervisor.
• D)corporate controller.

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Definitions:

Precautionary Motive

The desire to hold cash or liquid assets to safeguard against future uncertainties and unplanned expenses.

Speculative Motive

The intention to hold cash for the purpose of taking advantage of future opportunities that may arise, such as bargain purchases or earning profits from price changes.

Investment Opportunities

Investment opportunities refer to avenues where individuals or entities can invest their resources with the expectation of generating a future financial return.

Float Motive

The reason businesses hold onto cash for transactional purposes, allowing them to meet short-term obligations without liquidating investments.