Which of the Following Is Not a Rationale for Purchasing

question 11

Multiple Choice

Which of the following is not a rationale for purchasing to be a separate function?

• A) Purchasing promotes efficiency and effectiveness.
• B) Purchasing eliminates potential favoritism.
• C) Purchasing reduces the opportunity for fraud.
• D) Purchasing decentralizes control.

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Definitions:

Financing Activities

Transactions and events where a company raises funds to support its operations and expansions, typically involving equity and debt.

Net Cash

The amount of cash available after accounting for cash inflows and outflows, providing a clear picture of an entity's liquidity.

Investing Activities

Transactions and events that involve the acquisition or disposal of long-term assets and investments by a company.

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of a company.