In an Effort to Make Better and More-Efficient Purchase Decisions

question 97

Multiple Choice

In an effort to make better and more-efficient purchase decisions, Supersaver Inc., a large multi-store chain reseller, has formed formal groups of people to work together on purchase decisions. Which of the following statements accurately describes the people in the groups formed at Supersaver Inc.?

• A)The groups will not include individuals from other functional areas.
• B)The groups will never contain cross-functional teams.
• C)The organizational buyer will not be a member of the groups.
• D)The composition of the groups depends on the specific item being purchased.

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Definitions:

Retained Earnings

The portion of a company's profits that are kept and not paid out as dividends to shareholders, often reinvested into the business.

Special Dividend

A one-time distribution of earnings to shareholders, outside of the regular dividend schedule.

Stock Repurchase

A decision by a company to buy back its own shares from the marketplace, potentially to increase the value of remaining shares.

Outstanding Shares

Outstanding shares refer to the total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.