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
Date: September 19th, 2020
The objective for managing inventory is to ________. A) turn over inventory as quickly as possible without losing sales from stockouts B) improve the average collection period without affecting the sales C) make payment for the inventory as slowly as possible without losing suppliers D) reduce the time taken to process inventory into finished goods […]
Date: September 19th, 2020
The ________ is an inventory technique that takes into account various operating and financial costs to determine the order quantity for a specific inventory item. A) JIT system B) ABC system C) EOQ model D) LIFO model ANSWER C
Date: September 19th, 2020
In a(n) _, the parent of a multiple-subsidiary firm issues, via an IPO, equity shares for a particular subsidiary, though the parent usually keeps majority ownership of the shares, and thus control of the subsidiary. a. asset sale b. spin-off c. equity carve-out d. targeted stock issuance ANSWER C
Date: September 19th, 2020
TRUE or FALSE: Among publicly traded U.S. nonfinancial firms, most bankruptcy announcements are complete surprises to the market, as indicated by the fact that, for over 90% of such firms, their announcement-month market equity value (MEQ) is at least as high as their MEQ at month –12 relative to the announcement. a. TRUE b. FALSE […]
Date: September 19th, 2020
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
Date: September 19th, 2020
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
Date: September 19th, 2020
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
Date: September 19th, 2020
In the EOQ model, if carrying costs increase while all other costs remain unchanged, the number of orders placed would be expected to increase. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Bankruptcy risk plays a role in the propagation of recessions by: a. causing a backlog in the caseloads of bankruptcy courts. b. causing firms to increase capital expenditures as the economy begins to slow. c. forcing firms to pay down debt. d. straining the liquidity positions of both individuals and firms, both of which try […]
Date: September 19th, 2020
