Which of the Following Examples Is Similar to the Decision-Making

question 124

Multiple Choice

Which of the following examples is similar to the decision-making process in a democratic buying centre?

• A)Richard, the head of an expert committee in a construction company, decides to buy raw materials from a particular supplier after all the experts agree that the firm will benefit from the deal with this particular supplier.
• B)Annie, who heads a team of qualified professionals, decides on a particular design for a product after receiving input from other members of the team.
• C)Darren, the chief editor of a magazine, has the complete authority to make the final decision about which articles will be published in the magazine without informing the writers.
• D)John, the head of the core committee of a manufacturing firm, decides on the final value of the bid in a proposal without consulting the committee members.
• E)Julia, a member of an expert committee consisting of six members, decides on a particular advertisement to be used in the marketing campaign, as the ad has been approved by four members of the committee.

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Definitions:

Annuity

A series of identical cash flows.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Invest Today

A strategy or encouragement to allocate resources, such as time or money, currently, with the expectation of future benefits.

Present Value

The present value of a future amount of money or series of cash flows, when calculated with a certain return rate.