Entrepreneurship 4.02

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

• selling

• purchasing

• transformation

• negociation

What are three types of buying?

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

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

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

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

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 and appearance of those materials through a process known as

• affirmation

• specification

• transformation

• negociation

Which of the following is a detail that a buyer should know prior to placing an order for raw materials:

• How the finished product will be marketed

• which employees will be converting the raw materials into finished products

• who will be purchasing the finished products

• whether the company has storage space for the raw materials

Which of the following companies is most likely to purchase raw materials and components to convert into finished products:

• Target

• Sears

• Ford

• Big Lots

Doormats, carpeting, telephones, and cleaning chemicals are all items that an office might buy for

• production

• business use

• negotiations

• competitive bidding

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

Annika, the purchasing specialist for Dottie's Donut Shop, just located a new, less expensive sugar supplier. Dottie does not plan to lower donut prices. If Annika buys the shop's sugar from this cheaper supplier, what is likely to happen?

• Donut sales will decrease

• Donut sales will increase

• The profit margin for donuts will decrease

• The profit margin for donuts will increase