Some Purchasing Areas Require Permanent Cross-Functional Teams

question 6

Multiple Choice

Some purchasing areas require permanent cross-functional teams.A distributor of gas and welding equipment has a team that focuses on supplier relationships; this team includes a marketing manager to represent customers.What is the MOST likely factor that leads to a successful cross-functional purchasing team in this case?

• A) Top-level commitment
• B) Communication
• C) Appropriate leadership
• D) Continuity
• E) Embracing diversity

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Definitions:

Retain Earnings

Profits kept in the company to reinvest in the business or pay down debt, not distributed to shareholders.

Dividend Policy

The strategy a company uses to decide how much it will pay out to shareholders in dividends.

Payout Ratio

A financial metric that measures the proportion of earnings paid out to shareholders in the form of dividends, usually expressed as a percentage.

Earnings Growth

The increase in a company's earnings over a specified period, indicating financial health and profitability potential.