Corporate Policy That Requires a Purchasing Agent and Purchasing Department

question 73

Multiple Choice

Corporate policy that requires a purchasing agent and purchasing department manager to sign off on asset purchases over $1,500 is an example of

• A) general authorization.
• B) specific authorization.
• C) special authorization.
• D) generic authorization.

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Definitions:

Minimum Return

The lowest acceptable return on an investment, set by an investor or implied by a financial model or market expectation.

Residual Income

The amount of net income an entity generates beyond its required rate of return on its investments.

Invested Assets

Assets that a company or individual allocates resources toward with the expectation of generating a future benefit or income.

Maximum Return

The highest possible profit or gains that can be achieved from an investment or business venture.