Which of the Following Best Explains the Concept of 'Purchasing

question 60

Multiple Choice

Which of the following best explains the concept of 'purchasing effectiveness'? 

• A) Purchasing within budget 
• B) An assessment of costs and outputs achieved. 
• C) The extent to which, by choosing a certain course of action, a previously established goal standard is being pursued. 
• D) The extent to which, by choosing a certain course of action, a previously established goal standard is being met.

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Definitions:

Risk-Free Return

The return on an investment that is guaranteed not to result in any loss, often associated with government securities.

M2 Measure

A broad measure of money supply that includes cash, checking deposits, savings deposits, money market securities, mutual funds, and other time deposits.

Risk-Free Return

The theoretical return on an investment with zero risk, often associated with government bonds or treasury bills.

Jensen Measure

A performance metric that evaluates a portfolio manager's ability to generate excess returns relative to a benchmark, adjusting for risk.