When a Purchasing Manager Knows Roughly What Is Needed but Can't

question 34

Multiple Choice

When a purchasing manager knows roughly what is needed but can't describe it exactly-or when the purchasing arrangement may change as the job progresses-then buying is likely to be by:

• A) negotiated contract.
• B) description.
• C) inspection.

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Definitions:

Lump Sum

An amount of money paid in a single payment, rather than in installments.

11% Return

A specific rate of return on an investment, denoting a gain of eleven percent on the original amount invested.

Annual Interest Rate

The percentage of interest that is charged or earned on an investment or loan over a one-year period.

Down Payment

An initial payment made when purchasing an item on credit, particularly real estate, often expressed as a percentage of the purchase price.