When a Business Routinely Purchases the Same Product with Similar

question 166

Multiple Choice

When a business routinely purchases the same product with similar terms of sale,the purchase is called a

• A) new-task.
• B) repetitive purchase.
• C) straight rebuy.
• D) modified rebuy.
• E) standard order.

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Definitions:

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively a company uses investments to generate earnings growth.

Dividend Growth Rate

The annual percentage rate at which a company's dividend payments to shareholders increase.

Plowing Back

Refers to the strategy of reinvesting profits back into the business instead of distributing them as dividends.

Constant Growth DDM

The Constant Growth Dividend Discount Model (DDM) is a method to value a company's stock by assuming constant growth in dividends per share and discounting them back to present value.