In the ABC system of inventory management, the ________ method could be utilized to control C items. A) basic economic order quantity B) materials requirement planning C) two-bin D) just-in-time ANSWER C
A popular extension of materials requirement planning is manufacturing resource planning II, which integrates data from numerous areas such as finance, accounting, marketing, engineering, and manufacturing using a sophisticated computer system. Indicate whether the statement is true or false ANSWER TRUE
Empirical evidence indicates that the majority of distressed public firms that do not remain public: a. file for Chapter 11 bankruptcy (reorganization). b. file for Chapter 7 bankruptcy (liquidation). c. are acquired. d. undergo a going-private transaction (i.e., a buyout). ANSWER C
Empirical evidence indicates that for distressed firms, higher pre-distress leverage increases the probability of operational actions (e.g., asset restructuring and employee layoffs) and financial actions (e.g., dividend cuts). This evidence is consistent with the: a. disciplinary role of debt. b. wasteful cuts hypothesis. c. managerial discretion hypothesis. d. leverage aggressiveness hypothesis. ANSWER A
In the ABC system of inventory management, the ________ method or system is appropriate for managing B items. A) basic economic order quantity B) materials requirement planning C) two-bin D) just-in-time ANSWER A
State legislation designed to thwart takeovers has been enacted in recent years, including _, which can delay the consummation of business combinations for years. a. business combination laws b. voting share reprisal laws c. takeover postponement laws d. control share laws ANSWER A
In the ABC system of inventory management, the two-bin method or system could be utilized to control C items. Indicate whether the statement is true or false ANSWER TRUE
In EOQ model, the average inventory is defined as the order quantity divided by 2. Indicate whether the statement is true or false ANSWER TRUE
The purchasers in a buyout often obtain financial and strategic assistance from a _ who, as a sponsor, usually finances the transaction with equity contributed by a number of investors and debt borrowed from several sources. a. buyout specialist. b. LBO intermediary c. finance company d. venture capital firm ANSWER A
In many cases a firm that has gone private via an LBO subsequently re-emerges as a publicly traded firm (via another IPO). This transaction is called a a. reprise IPO. b. resumption. c. reverse LBO. d. rollover. ANSWER C