In debt restructuring, all debt claimants must agree on the reassignment of debt claims, but one or more claimants has an incentive to wait for a better deal. This is known as the problem. a. holdout b. instigation c. concession d. compromise ANSWER A
Date: September 19th, 2020
The ________ is an inventory management technique that minimizes inventory investment by having materials inputs arrive at exactly the time they are needed for production. A) ABC system B) FIFO method C) MRP system D) JIT system ANSWER D
Date: September 19th, 2020
A computerized inventory system that simulates needed materials requirements for the finished product, and then compares production needs to available inventory balances to determine when orders should be placed is the ________. A) basic economic order quantity system B) materials requirement planning system C) just-in-time system D) red-line method ANSWER B
Date: September 19th, 2020
In Chapter 11, the court has two mechanisms to implement an optimal bankruptcy outcome: a. the right to extinguish any claim, and the use of a restricted auction. b. the right to extinguish any claim, and restrictions on bargaining between claimants. c. restrictions on bargaining between claimants, and the threat of fines. d. restrictions on […]
Date: September 19th, 2020
The philosophy of the ________ is that a firm would have only work-in-process inventory. A) basic economic order quantity system B) materials requirement planning system C) just-in-time system D) LIFO method ANSWER C
Date: September 19th, 2020
Inventory items that belong in the A category include ________. (See Table 14.4 ) A) Items 4 and 6 B) Items 1 and 7 C) Items 3 and 9 D) Items 1 and 8 ANSWER A
Date: September 19th, 2020
The economic order quantity (EOQ) is the order quantity which minimizes ________. A) the order cost per order B) the total inventory costs C) the carrying costs per unit per period D) order quantity in units ANSWER B
Date: September 19th, 2020
Debt restructuring is generally accomplished via a combination of (i) and (ii). (i) (ii) a. default forgiveness b. consolidation exit (of some creditors) c. forgiveness ex post regret d. exchange offers coercion ANSWER D
Date: September 19th, 2020
The total cost of a firm’s inventory is found by summing the ________. A) order cost and the marginal cost of a firm’s inventory B) order cost and the carrying cost of a firm’s inventory C) order cost and the actual cost of a firm’s inventory D) carrying cost and the marginal cost of a […]
Date: September 19th, 2020
According to signaling theory, Chapter 11 is a useful mechanism for screening inefficient firms out of debt renegotiation. Inefficient firms voluntarily choose Chapter 11 because: a. the firm can be liquidated more quickly. b. negotiations therein generally result in some value retained by shareholders. c. creditors are protected from violations of the absolute priority rule […]
Date: September 19th, 2020
