Which of the Following Statements About Purchasing Organizations Are Correct

question 28

Multiple Choice

Which of the following statements about purchasing organizations are correct?

• A)They negotiate conditions of purchase with vendors
• B)They can purchase only for one company
• C)They can purchase for multiple plants
• D)They can purchase for multiple plants,but they must be within the same company code
• E)They identify a buyer or a group of buyers

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Definitions:

Rate of Return

The earnings or losses realized from an investment for a certain period, presented as a proportion of the investment's original expenditure.

First Dividends

The initial distribution of earnings declared by a company to its shareholders.

Constant Dividend

A dividend policy in which a firm aims to distribute a fixed amount or a stable dividend to shareholders per share, unaffected by fluctuations in its earnings or profits.

Required Rate of Return

The minimum expected rate of return on an investment, deemed necessary to compensate for its risk.