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Buy Right
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Questions in this quiz (20)
1Nina oversees the buying of goods and services for her company. Which business department does she likely work in?
- Aa. selling
- Bb. purchasing
- Cc. transformation
- Dd. negotiating
2What are three types of buying?
- Aa. Buying for resale, buying for make-or-buy decisions, and buying for retailers
- Bb. Buying for resale, buying for transformation, and buying for retailers
- Cc. Buying for transformation, buying for business use, and buying for wholesalers
- Dd. Buying for resale, buying for transformation, and buying for business use
3Jeremiah 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?
- Aa. wholesale
- Bb. retail
- Cc. industrial
- Dd. business use
4Suzette purchases sporting goods from several different manufacturers and sells the items in her shop, Suzy’s Sports. What kind of buyer is Suzette?
- Aa. wholesale
- Bb. retail
- Cc. industrial
- Dd. business use
5Molly purchases raw materials for a factory that changes the shape or appearance of those materials through a process known as
- Aa. affirmation
- Bb. specification
- Cc. transformation
- Dd. negotiation
6Which of the following is a detail that a buyer should know prior to placing an order for raw materials:
- Aa. How the finished product will be marketed
- Bb. Which employees will be converting the raw materials into finished products
- Cc. Who will be purchasing the finished products
- Dd. Whether the company has storage space for the raw materials
7Which of the following companies is most likely to purchase raw materials and components to convert into finished products:
- Aa. target
- Bb. sears
- Cc. ford
- Dd. big lots
8Doormats, carpeting, telephones, and cleaning chemicals are all items that an office might buy for
- Aa. production
- Bb. business use
- Cc. negotiations
- Dd. competitive bidding
9Why should purchasing specialists develop positive relationships with their suppliers?
- Aa. To help ensure that the suppliers will follow through on their promises
- Bb. To prevent supplier theft
- Cc. To eliminate the need to look for back-up sources of goods and services
- Dd. To increase the ratio of materials’ cost to finished product cost
10Annika, 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?
- Aa. Donut sales will decrease.
- Bb. Donut sales will increase.
- Cc. The profit margin for donuts will decrease.
- Dd. The profit margin for donuts will increase.
11What is one way in which purchasing specialists play an important role in the success of a business?
- Aa. Forecasting sales
- Bb. Planning the company’s cash flow
- Cc. Determining the price of finished products
- Dd. Providing a flow of goods
12In addition to purchasing, Sherita’s job responsibilities include developing partnerships and alliances with suppliers, watching for business threats and opportunities, and looking for ways to improve processes. Sherita is involved in
- Aa. strategic planning
- Bb. negotiation
- Cc. marketing planning
- Dd. productivity
13Which of the following is a step in the purchasing process:
- Aa. initiating promotion
- Bb. identifying needs
- Cc. managing the sales force
- Dd. selecting subordinates
14What are two things that a purchasing specialist should consider when making a make-or-buy decision?
- Aa. The company’s production capabilities and the sales of the finished product
- Bb. The cost of making the needed parts and the sales of the finished product
- Cc. The purchasing department structure and the marketing mix
- Dd. The company’s production capabilities and the cost of making the needed parts
15Jaron, the district technology coordinator for Abington City Schools, is responsible for purchasing new computers for the district. He recently sent out a request for price quotes to five different computer companies, and he is waiting to hear what the various suppliers’ proposed prices will be. Jaron is conducting
- Aa. competitive bidding
- Bb. negotiations
- Cc. make-or-buy decision
- Dd. retail buying
16What is an acceptable reason to select a supplier offering the best value versus the lowest price?
- Aa. The supplier with the best value is offering a kickback.
- Bb. The lowest priced supplier doesn’t need the business.
- Cc. The lowest priced product is of inferior quality.
- Dd. The supplier offering the best value is a good friend.
17If 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?
- Aa. transforming
- Bb. bidding
- Cc. negotiating
- Dd. forcasting
18After a purchasing specialist has determined that s/he has selected the right supplier for a job, what do s/he and the supplier develop?
- Aa. invoice
- Bb. request for bids
- Cc. purchase agreement
- Dd. blanket purchase order
19Which of the following is a way to evaluate supplier performance after the purchased goods or services have been delivered:
- Aa. Contact the supplier’s references
- Bb. Review the invoice
- Cc. Visit the supplier’s plant
- Dd. Check the supplier’s credentials
20Why should a purchasing specialist evaluate supplier performance?
- Aa. To determine whether s/he should use the supplier again
- Bb. To assist in new product development
- Cc. To purchase items to sell to wholesalers and retailers
- Dd. To develop a purchase contract
Information
- Description
- 12th grade business Quiz on Buy Right, created by Victoria Hatton on 13/12/2017.
- Author
- Victoria Hatton
- Language
- English
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