Answer:
C) supplier selection
Explanation:
The five stages of the business buying decision process are:
- Awareness and recognition: someone at the company identifies the need for a purchase.
- Specification and research: a detailed specification about what product is needed, quantity and technical requirements is elaborated. Using this information you start to search for potential vendors or suppliers that can offer the product.
- Request for proposals: vendors are contacted and you request them to send you their proposals regarding the products that you are looking for.
- Evaluation of proposals: the buying team must evaluate the proposals received form the potential vendors and select the most appropriate one.
- Order and review process: Price ans selling terms are negotiated, he order is placed and finally the products received are controlled to check that they meet the specifications.
Answer: 16.33%
Explanation:
With the details given, the best method of Calculating the expected rate of return is the Capital Asset Pricing Model (CAPM).
The formula is,
Er = Rf + b(Rm - Rf)
Where,
Er is expected return
Rf is the risk free rate
b is beta
Rm - Rf is the Market Premium
Er = 3.87% + 1.38(9.03)
= 3.87% + 12.4614%
= 16.33%
The model accounts for inflation by including the risk free rate which is already adjusted for inflation.
I would say B is the answer. :)
