Question

When charitable organizations such as the American Cancer Society, Second Harvest Foodbank, and the Red Cross make purchases for goods and services to use in their daily operations, they would be considered to be _______ buyers.A) CorporateB) governmentC) institutionalD) producerE) nonprofit

Answer 1

Answer: C) institutional

Explanation:

Institutional buyers or qualified institutional buyers (QIB) are purchasers of goods and services that are seen to be financially buoyant and sophisticated and also recognized by Securities market regulators. Therefore, they need less protection from issuers than other buyers.

As of the case above, those organisations mentioned satisfies the requirements to be referred to as institutional buyers.