A formal buying organization is characterized by ________.
A) the same personnel handling merchandising and other retail functions
B) low organizational costs
C) the merchandising function being a separate department
D) flexibility in organizational design

Question

Quizplus · Accepted Answer

A formal buying organization is characterized by the merchandising function being a separate department, which allows for specialization and expertise in the buying process. Having the same personnel handle both merchandising and other retail functions (A) would not be formal or efficient. Low organizational costs (B) could be a characteristic of any type of organization, formal or informal. While flexibility in organizational design (D) is important, it is not necessarily a defining characteristic of a formal buying organization.

A Formal Buying Organization Is Characterized by ________