When a Business Is Making Its Initial Purchase of an Item

question 13

Multiple Choice

When a business is making its initial purchase of an item to be used to perform a new job, it is known as a ____ purchase.

• A) straight rebuy
• B) reciprocal
• C) delayed
• D) new task
• E) modified rebuy

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Definitions:

Convertible Bond

A type of bond issued by corporations that can be converted into a predetermined number of shares of the issuing company's stock at certain times during the bond's life, usually at the discretion of the bondholder.

Interest Payment

The payment made to a lender by a borrower for the privilege of borrowing money, typically part of the return on a loan or bond.

Cash Dividend

A payment made by a company out of its profits to shareholders, usually in the form of cash.

Interest Paid

The total amount of interest expenses a borrower has paid over a certain period to lenders for the use of borrowed funds.