POBF Review 4.00

The Anderson Convenience Store charged a customer with trying to cash a bad check and with using an expired credit card. The customer was engaged in what type of fraud?

• point-of-sale  
• price-ticket switching  
• short-change  
• internal theft

Some businesses use an automatic reorder system to maintain an adequate:

• budget for expenses.  
• work environment.
• inventory of supplies.
• maintenance system.

Trey compares the prices offered by different vendors for the same goods and services. Which part of the purchasing process is Trey involved in?  

• price fixing
• bid analysis
• invoice payment
• receipt of goods

Maintaining an inventory of supplies helps a business to:

• establish sales goals
• operate efficiently
• locate vendors
• evaluate processes

By purchasing just the quantity of supplies that is needed, purchasing can:

• plan the company's cash flow
• provide an uninterrupted flow of supplies
• buy supplies at the lowest possible price
• minimize inventory investment

Mark, who owns a small home-appliance store, is in the process of placing an order for 12 refrigerators, 8 stoves, and 4 portable dishwashers. Mark is purchasing the refrigerators for $674.98 each, the stoves for $493.22 each, and the portable dishwashers for $284.83 each. What is the total cost of the stoves that Mark is purchasing?

• $493.22  
• $3,945.76
• $2,278.64
• $5,399.84

Which question should be answered by the purchasing function?

• How can we inform customers of available merchandise?
• How much merchandise should we buy?  
• How will merchandise be shipped to us?
• How can we protect merchandise from pilferage?

The first step in maintaining an inventory of supplies for the business is to:  

• conduct research to find vendors that sell the supplies
• develop a list of supplies that the business needs
• compare prices among vendors
• organize a space to store the supplies

What is one of the first procedures to follow if business employees detect a fire in the facility?

• Locate fire extinguishers
• Evacuate the premises
• Contact corporate headquarters
• Hide the valuables

A reason why businesses are required to keep accident records is for:

• insurance purposes
• Good Samaritan Law
• personal liability
• Social Security Act