E OBJ 4.02 MC

Nina oversees the buying of goods and services for her company. Which business department does she likely work in?

• Purchasing

• Transformation

• Selling

• Negotiating

What are three types of buying?

• Buying for transformation, buying for business use, and buying for wholesalers

• Buying for resale, buying for transformation, and buying for business use

• Buying for resale, buying for transformation, and buying for retailers

• Buying for resale, buying for make-or-buy decisions, and buying for retailers

Jeremiah purchases sterling silver necklaces and bracelets from Native American artisans and sells the items to jewelry stores and gift shops. What kind of buyer is Jeremiah?

• Wholesale

• Retail

• Industrial

• Business use

Suzette purchases sporting goods from several different manufacturers and sells the items in her shop, Suzy’s Sports. What kind of buyer is Suzette?

• Wholesale

• Retail

• Industrial

• Business use

Molly purchases raw materials for a factory that changes the shape or appearance of those materials through a process known as

• affirmation.

• negotiation.

• transformation.

• specification.

Why should purchasing specialists develop positive relationships with their suppliers?

• To help ensure that the suppliers will follow through on their promises

• To prevent supplier theft

• To eliminate the need to look for back-up sources of goods and services

• To increase the ratio of materials’ cost to finished product cost

If a purchasing specialist and a supplier discuss potential issues and ways to resolve them prior to making a purchase, what are the two parties doing?

• Negotiating

• Bidding

• Transforming

• Forecasting

After a purchasing specialist has determined that s/he has selected the right supplier for a job, what do s/he and the supplier develop?

• Purchase agreement

• Blanket purchase order

• Request for bids

• Invoice

Which of the following is a step in the purchasing process:

• Managing the sales force

• Initiating promotion

• Identifying needs

• Selecting subordinates

Why should a purchasing specialist evaluate supplier performance?

• To determine whether s/he should use the supplier again

• To assist in new product development

• To purchase items to sell to wholesalers and retailers

• To develop a purchase contract