A Buying Centre in Which One Person Makes the Decision

question 109

Multiple Choice

A buying centre in which one person makes the decision alone though there may be multiple participants is known as a(n) :

• A)democratic buying centre.
• B)consensus buying centre.
• C)autocratic buying centre.
• D)modified buying centre.
• E)consultative buying centre.

---

Definitions:

Project Profitability Index

The ratio of the net present value of a project’s cash flows to the investment required.

Internal Rate

Typically refers to the Internal Rate of Return (IRR), a financial metric used to estimate the profitability of potential investments.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Payback Method

A capital budgeting technique that calculates the time required to recoup the cost of an investment.