Sam Works for a Small IT Management Company

question 109

Multiple Choice

Sam works for a small IT management company.He is responsible for replenishing the supply of office stationery.Every week he makes an inventory of the required items and gets them.Using the business products classification system,which of the following is most likely to be true of Sam's purchases?

• A)Sam's purchases are influenced solely by the quality of the products.
• B)Sam plans extensively for his purchases.
• C)Sam's purchases tend to be infrequent.
• D)Sam's purchases are highly influenced by the prices of the products.

---

Definitions:

Payment Obligation

A financial commitment that requires a party to pay a certain amount of money by a specified date.

Character

In finance, character often refers to the qualitative assessment of a borrower's integrity and history in meeting debt obligations, used in credit analysis.

Capacity

The maximum amount that something can contain or produce, often used in the context of production and manufacturing facilities.

Gross Profit

The difference between revenue and the cost of goods sold before accounting for certain other costs.