Sizing up operation management involves: A) identifying the firm’s strengths and weaknesses related to operations. B) an external assessment of the industry. C) an internal assessment of the firm’s strengths and weaknesses. D) All of the above. ANSWER A
________ ensure that money lent under a line of credit agreement is actually being used to finance seasonal needs. A) Operating-change restrictions B) Annual cleanups C) Compensating balances D) Commitment fees ANSWER B
Under terms of the U.S. federal bankruptcy code, chapter ________ call for a ________ pr. A) 11; liquidation B) 7; reorganization C) 7; liquidation D) None of the above ANSWER C
The firm’s supply risk can best be analyzed by examining: A) the components of the firm’s operations management. B) the components of the firm’s operations management compared with the key industry success factors. C) the key industry success factors and their impact on profitability. D) the behavior of the firm’s major competitors. ANSWER […]
________ would be a common source of financing in international trade. A) Commercial paper B) Negotiable CDs C) Treasury bonds D) Banker’s acceptances ANSWER D
The cumulative feature of preferred stock means that preferred dividends cannot be paid until all common dividends have been paid. Indicate whether the statement is true or false ANSWER FALSE
The structure of competitive forces establishes the profitability of an industry. Indicate whether the statement is true or false ANSWER TRUE
________ is/are a short-term, generally unsecured. corporate IOUs issued by the “most credit-worthy” firms. A) Repurchase agreements B) Commercial paper C) Negotiable CDs D) Treasury bills ANSWER B
Due to regulatory capital requirements, there tends to be a concentration of preferred shares in the ________ industry. A) airline B) railroad C) power generation D) banking ANSWER D
A major assumption of breakeven analysis and one which causes severe limitations in its use is that ________. A) fixed costs really are fixed B) total revenue is nonlinear C) revenues and operating costs are linear D) all costs are really semi-variable ANSWER C