In an Effort to Make Better and More Efficient Purchase

question 120

Multiple Choice

In an effort to make better and more efficient purchase decisions,the Ford Motor Company forms loosely organized groups of people who work together on purchase decisions.The people included in these groups change depending on the purchase situation and may include key personnel from various departments,including research and development,finance,marketing,shipping,and sales.Such a loosely organized group of people within an organization who are involved in the purchase decision is correctly called an organizational:

• A)selling committee.
• B)functional unit.
• C)purchasing unit.
• D)buying centre.

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Definitions:

Debt Investments-HTM

Investments in debt securities intended to be held to maturity, accounting for fixed-income investments until they are redeemed.

Bonds Mature

The point in time when a bond's principal amount is due to be paid back to the bondholder.

Interest Payments

Payments made to a lender by a borrower in return for the use of borrowed money, typically represented as an annual percentage of the loan principal.

Unrealized Gain

An increase in the value of an asset that has not been sold yet; hence, the gain is not reflected in the income statement.