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
Date: September 19th, 2020
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
Date: September 19th, 2020
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
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
When the Federal Reserve Board’s open market committee buys T-bills, it is pursuing a. contractionary monetary policy. b. expansionary monetary policy. c. fiscal discipline. d. a policy of balancing the federal budget. ANSWER B
Date: September 19th, 2020
In the EOQ model, the total cost is minimized at the point where the order costs and carrying costs are equal. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
