Which Method of Business Buying Is Most Likely to Be

question 57

Multiple Choice

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics?

• A) Homogeneous selection
• B) Inspection
• C) Description
• D) Sampling
• E) Negotiation

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Definitions:

Fair Value

The price one would receive for offloading an asset or would pay to reassign a liability during a formal transaction with participants in the market at the time of valuation.

Consolidated Balance

Refers to the presentation of assets, liabilities, and equity in a single balance sheet that combines the financials of a parent company with its subsidiaries.

Parent

In corporate finance, refers to a company that holds a controlling interest in one or more subsidiary companies.