All of the Following Statements About the Purchase Involved in Organizational

question 169

Multiple Choice

All of the following statements about the purchase involved in organizational buying are true EXCEPT:

• A)the length of time required to arrive at a purchase agreement can vary with size of purchase.
• B)the dollar value of a single purchase made by an organization often runs into thousands or millions of dollars.
• C)the size of purchase impacts who participates in the purchase decision.
• D)the size of purchase impacts who makes the final decision.
• E)the size of the purchase involved in organizational buying is typically smaller than that in consumer buying but it is done more frequently.

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Definitions:

Price Inelastic

Refers to a situation where the quantity demanded or supplied of a good or service changes by a smaller percentage than changes in price.

Alcohol Tax

A tax imposed on the sale of alcoholic beverages, often used as a means to discourage excessive drinking and to generate government revenue.

Revenue

The total amount of money generated by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.

Price Inelastic

Describes a situation where the demand for a product does not change significantly when its price changes.