Which of the Following Is Not True of Reverse Auctions

question 58

Multiple Choice

Which of the following is not true of reverse auctions?

• A) Retail buyers provide a group of potential vendors with a specification for what they want.
• B) There is one buyer,the retailer,and many potential sellers,the manufacturing firms.
• C) Retailers use it to get quality private-label merchandise at low prices.
• D) Reverse auctions are common among commodities and seasonal products.
• E) The retailer chooses the lowest bidder regardless of other factors.

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Definitions:

Payback Period

The payback period is a capital budgeting metric that measures the time required for an investment to generate cash flows sufficient to recover its initial cost, helping assess the risk and efficiency of an investment.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used as a method for evaluating the profitability of an investment.

Complex Equipment

Machinery or systems that involve intricate components and functionalities, typically requiring specialized knowledge to operate.

Skilled Workers

Individuals possessing specialized training, knowledge, or ability in their professional areas, contributing to their proficiency and efficiency at work.