During the Next-To-The-Last Stage of the Organizational Purchase Decision Process,the

question 48

Multiple Choice

During the next-to-the-last stage of the organizational purchase decision process,the organization engages in:

• A)information search.
• B)post-purchase behaviour.
• C)alternative evaluation.
• D)purchase decision.

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Definitions:

Present Value Factors

A mathematical formula used to determine the present value of a series of future cash flows by applying a specific discount rate.

Capital Lease

A lease classified as a purchase by the lessee for accounting purposes, where the lessee essentially buys the leased asset.

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow on a collateralized basis over a similar term the funds necessary to lease an asset.