A Buyer for Macy's Department Stores Orders Handbags from a Supplier

question 4

Multiple Choice

A buyer for Macy's Department Stores orders handbags from a supplier because that supplier allows the buyer to maintain Macy's company policy of 30-day advance purchase notice. This is an example of ____ influence on the business buying decision process.

• A)environmental
• B)organizational
• C)interpersonal
• D)individual
• E)demographic

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Definitions:

Average Collection

The average period of time it takes for a business to receive payments owed by its customers.

Debt-to-equity Ratio

A measure of how a company's assets are financed, comparing the roles of shareholder equity and debt.

Return on Equity

A metric indicating financial success determined by dividing a company's net income by its shareholders' equity, demonstrating the efficacy of using investments to create increased profits.

Net Profit Margin

A financial metric that shows the percentage of revenue that remains as profit after all operating expenses, interest, taxes, and preferred stock dividends are deducted.