Buy Classes Refer to the Three Types of Organizational Buying

question 146

Multiple Choice

Buy classes refer to the three types of organizational buying situations:

• A) buy, lease, and rent.
• B) new buy, make, and reprocess.
• C) manufacturing contracts, consulting contracts, service contracts.
• D) new buy, straight rebuy, and modified rebuy.
• E) new buy, refurbish, and used buy.

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Definitions:

Accounts

Financial records that track all transactions related to a specific item, such as revenues, expenses, assets, liabilities, or equity.

Normal Balance

The side (debit or credit) of an account that is usual or expected to increase the balance of that account.

Liability

Financial obligations or debts that a company owes to others, which must be settled through the transfer of assets or provision of services.

Asset

An economic resource that can be owned or controlled to produce value and that is held by a company to produce positive economic value.