Which of the Following Statements About Purchasing by Small Service

question 190

Multiple Choice

Which of the following statements about purchasing by small service firms is NOT TRUE?

• A) Purchases by small service firms are often handled by whoever is in charge or their administrative assistant.
• B) Purchases by small service firms can add up and these smaller firms are now an important target market.
• C) Purchases by small service firms are usually handled by a person with full-time responsibility for purchasing.
• D) Small service firms may need much more help in buying than large corporations.
• E) Small service companies often rely on e-commerce for purchases.

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Definitions:

Local Levels

Pertains to activities, governance, or administration executed at a community, town, or city scale, focusing on the immediate geographical area.

Diseconomies of Scale

A situation in which a firm experiences an increase in average costs due to an increase in its size or output level, often resulting from inefficiencies and higher per unit costs.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Demand Curves

Visual diagrams that illustrate the connection between a product's price and the amount consumers are willing to buy.