Answer the following statements true (T) or false (F)
1) The terms procurement and purchasing are used interchangeably.
2) The focus of the purchasing function in the new millennium (year 2000 onwards) has been solely on reducing prices.
3) The focus of the purchasing function in the war years (1910-1946) was on obtaining scarce materials.
4) Purchased goods and services typically make up under 50% of a firm's cost of goods sold.
5) A dollar saved in the cost of materials purchased is a dollar added to the pre-tax profit.
1) TRUE
2) FALSE
3) TRUE
4) FALSE
5) TRUE
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Which of the following statements regarding the activities of Forman Corp is true?
a. Revenues decrease Forman's stockholders' equity. b. Expenses increase Forman's stockholders' equity. c. Expenses decrease Forman's stockholders' equity. d. None of these answer choices is correct.
A security interest:
a. is an interest only in personal property to secure payment or performance of an obligation. b. is effective against third parties, but not the debtor, when it "attaches.". c. may arise in fixtures under UCC Article 9. d. in fixtures, even if perfected, will not have priority over a mortgage in the real property to which the goods are attached.
The risk-return trade-off implies that the return on a riskless asset must be zero
Indicate whether the statement is true or false
Why is Enterprise Risk Management so important for firms?
What will be an ideal response?