A report telling how well all approved vendors have performed in the prior 12 months is information that is MOST needed in which business process?

a. paying vendors [Incorrect. To pay a vendor, a company needs to know whether merchandise ordered was received in good condition. They do not need a 12-month history of vendor performance.]

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b. acquiring inventory [Correct. Companies want to acquire inventory from companies that have performed well in the past. A vendor performance report would disclose whether the vendor shipped inventory on time, whether the inventory was of the requested quality, whether the prices were as agreed upon, etc.]

c. selling merchandise [Incorrect. A 12-month history of vendor performance is usually not very helpful in trying to sell products to customers. More important would be customer tastes and preferences, customer credit status, etc.]

d. paying employees [Incorrect. It is very rare for an employee’s pay to be based on a 12-month history of vendor performance. More important are hours worked, annual salary, sales figures to calculate commissions, etc.]