Dell Computers Purchases Most of Its Parts from Several Suppliers

question 25

Multiple Choice

Dell Computers purchases most of its parts from several suppliers and then assembles products based on customer specifications. The company's hard drive supplier's contract will expire soon and Dell intends to shop around for a new supplier. The purchasing process could involve all of the following except

• A) market research.
• B) description.
• C) sampling.
• D) negotiation.
• E) inspection.

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Definitions:

Creditors

Individuals or entities that a company owes money to because they have provided goods or services on credit.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Corporation's Assets

The resources owned by a corporation that have economic value and can be used to meet its financial obligations.

Preferred Stockholders

Preferred stockholders are investors who own shares of a company's preferred stock, which often provides fixed dividends and priority over common stockholders in asset liquidation.