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:

Expected Return

The projected return on an investment over a given period of time, factoring in various risks and the time value of money.

Single Life Annuity

A financial product that provides a stream of payments to an individual for their lifetime, ceasing upon their death.

Annuity Contract

A financial agreement between an individual and an insurance company where the individual makes a lump-sum payment or series of payments in exchange for regular disbursements starting either immediately or at some point in the future.

Expected Return

Expected return is a financial term representing the average of all possible returns for a given investment, factoring in the likelihood of each outcome.