A buy class situation affects buying center tendencies in different ways. If the decision time is long, both new and present suppliers are considered, and the buying objective is a good solution, the buy class situation is most likely a

A. new buy.
B. standard buy.
C. make-buy.
D. modified buy.
E. straight rebuy.


Answer: A

Business

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A taxpayer pays 6.2% of taxable wages for both social security and Medicare taxes.

Answer the following statement true (T) or false (F)

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Which of the following statements about routing is true?

A. The critical factor in sales routing is to minimize the number of miles you drive. B. Most companies allow considerable flexibility in routing. C. Under the ELMS classification system, the S (super-size) accounts should be called on with greatest frequency. D. Global positioning systems have eliminated the need for routing reports. E. The best routing pattern to use is the cloverleaf pattern.

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Under a consent order, a company has to admit that it is deceptive

Indicate whether the statement is true or false

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Jacobs Company issued bonds with a $300,000 face value on January 1, Year 1. The bonds were issued at 102 and carried a 5-year term to maturity. They had a 9% stated rate of interest that was payable in cash on December 31st of each year. Jacobs uses the straight-line method to amortize bond discounts and premiums. Based on this information alone, how does the recognition of interest expense during Year 1 affect the company's accounting equation?

A. Increase liabilities by $1,200, decrease assets by $25,800, and decrease equity by $27,000 B. Decrease both assets and stockholders' equity by $2,700 C. Decrease equity by $25,800, decrease liabilities by $1,200, and decrease assets by $27,000 D. Decrease both assets and stockholders' equity by $25,800

Business