What is the name of the type of demand for money that arises because a firm may need to purchase something due to an unanticipated change in its environment?

A) transactions
B) precautionary
C) short-term
D) long-term

Answer: B

Business

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Once a firm has carefully studied all of the vendors, bids have been considered, and the vendor audit has been conducted, the next step in the business-to-business buying process is:

A) the vendor screening B) vendor selection C) negotiation of purchase terms D) postpurchase evaluation

Business

When a concave downward function is present, increasing advertising expenditures result in:

A) greater sales B) diminishing returns C) average returns D) further advertising expenditures

Business