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
In an equity carve-out, the parent of a multiple-subsidiary firm issues equity claims against a particular subsidiary via a a. private placement. b. pro-rata distribution to the parent’s current stockholders. c. public offering. d. unit distribution. ANSWER C
Date: September 19th, 2020
When maintaining appropriate inventory level, a purchasing manager should ________. A) keep the inventory level low, to ensure that the firm’s money is not being unwisely invested in excess resources B) ensure that all orders could be filled quickly, eliminating the need for backorders due to stockouts C) implement the production plan to acquire the […]
Date: September 19th, 2020
A spin-off is a a. pro-rata distribution of new equity claims on a subsidiary to the parent’s shareholders. b. sale of a division for cash to another firm. c. tax-driven sale of depreciation rights to another firm. d. sale of patent rights (e.g., for a pharmaceutical drug) to another firm. ANSWER A
Date: September 19th, 2020
The ________ is a technique that divides inventory into three groups, according to dollar investment. A) JIT system B) ABC system C) EOQ model D) LIFO model ANSWER B
Date: September 19th, 2020
To address distress, any of the following changes in the focal firm’s board structure are consistent with theory EXCEPT: a. replacing insiders with outsiders. b. limiting the ability of the board to veto the CEO’s proposals. c. requiring directors to hold equity shares. d. limiting the tenure of directors e. ending the staggering of board […]
Date: September 19th, 2020
