All of the Following Statements About the Size of the Purchase

question 194

Multiple Choice

All of the following statements about the size of the purchase involved in organizational buying are true EXCEPT:

• A)the length of time required to arrive at a purchase agreement can vary.
• B)the dollar value of a single purchase made by an organization often runs into thousands or millions of dollars.
• C)it impacts who participates in the purchase decision.
• D)it impacts who makes the final decision.
• E)the size of the purchase involved in organizational buying is occasionally much larger than that in consumer buying.

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Definitions:

Cash

This term refers to money in the form of currency that is used to conduct transactions, make purchases, or settle debts.

Journal Entries

Accounting records that document all the financial transactions of a business, showing the debits and credits for each transaction.

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Exchange Rates

The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of the other.