When Deciding How to Fulfill a Purchasing Need, a Business

question 95

Multiple Choice

When deciding how to fulfill a purchasing need, a business would most likely find leasing the product to be the best option when ________.

• A) the business has the capacity to produce the product
• B) the product is expected to have rapid technological change
• C) the business wants to retain a competitive uniqueness
• D) the product is expected to need little servicing
• E) the product is expected to undergo few changes

---

Definitions:

Demand

The amount of a good or service that buyers are ready and capable of buying at different price levels over a given time frame.

Human Capital

The expertise, know-how, and practical experiences that a person or collective maintains, regarded in relation to their financial or worth importance to a business or country.

Nonhuman Capital

Resources or assets that are not human, such as machinery, buildings, and land, used in the production of goods and services.

Knowledge

information, understanding, or skills obtained through experience or education; the theoretical or practical understanding of a subject.