In Which of the Following Situations Is an Organizational Purchase

question 19

Multiple Choice

In which of the following situations is an organizational purchase type of straight rebuy recommended?

• A) When an organization lacks experience at buying a product
• B) When an organization is experimenting with many vendors
• C) When an organization has an ongoing need for a product
• D) When an organization considers several alternatives while buying a product

---

Definitions:

Market Interest Rate

The prevailing rate of interest determined by supply and demand in the money market.

Par

Typically refers to a face value of a bond or stock that is set at issuance, or the stated value of a currency.

Principal Amount

The original sum of money borrowed in a loan, or invested, on which interest is calculated.

Maturity

Maturity is the date on which the principal amount of a bond, loan, or other financial instrument is to be repaid in full to the investor or lender.