Which of the Following Observations About the Types of Organizational

question 75

Multiple Choice

 Which of the following observations about the types of organizational purchases is true? 

• A) Straight rebuys and modified rebuys take an equal amount of time to transact.
• B) More suppliers are involved in a modified rebuy than in a new task purchase.
• C) Modified rebuys are always made for goods that require an automatic reorder.
• D) The time frame for a new task purchase is much longer than that for a modified rebuy.

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Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered or used but not yet paid for.

Accrued Interest

The interest that has been earned but not yet paid, accumulating on loans, bonds, or any other financial instruments over a period of time.

Notes Receivable

Financial assets representing amounts owed to a company by debtors, typically evidenced by formal instruments with specified payment terms.

Factoring Fee

A charge assessed for the service of factoring, where a business sells its receivables to a third party at a discount.