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 […]
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
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
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 […]
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
Contract devices explicitly designed to thwart a hostile takeover attempt are called poison pills or shark repellents. Examples include all of the following EXCEPT: a. a shareholder rights plan that can be issued as dividends at management’s discretion. b. an event-triggered put provision in one of the firm’s debt contracts. c. a provision in the […]
Safety stocks are extra inventories that can be drawn down when actual lead times and/or usage rates are greater than expected. Indicate whether the statement is true or false ANSWER TRUE
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
