Which of the following is an example of carrying cost? A) insurance of goods in transit B) transportation cost C) insurance cost D) cost of inventory ANSWER C
Date: September 19th, 2020
Investors who specialize in the debt or equity of distressed firms are called: a. speculators. b. arbitrageurs. c. bottom dwellers. d. vulture investors. ANSWER D
Date: September 19th, 2020
TRUE or FALSE: For distressed firms with both bank and public debt outstanding, banks never make concessions unless public debtholders also restructure their claims. a. TRUE b. FALSE ANSWER A
Date: September 19th, 2020
The ________ uses no, or very little, safety stock. A) basic economic order quantity system B) materials requirement planning system C) just-in-time system D) FIFO method ANSWER C
Date: September 19th, 2020
In the EOQ model, ________ costs are the variable costs per unit of holding an item of inventory for a specified time period. A) marginal B) order C) carrying D) processing ANSWER C
Date: September 19th, 2020
TRUE or FALSE: According to empirical studies, the combination of secured private debt and numerous public debt issues (in a distressed firm’s capital structure) impedes out-of-court debt restructuring and increases the probability of a Chapter 11 filing. a. TRUE b. FALSE ANSWER A
Date: September 19th, 2020
To preserve the value of a distressed firm, it is generally important for the firm to continue operating throughout Chapter 11 proceedings. Generally, the firm’s current management is allowed to run the firm during the proceedings under a restrictive arrangement called a. the value-preservation dictum. b. debtor-in-possession. c. managerial discretion. d. trustee assignment. […]
Date: September 19th, 2020
In the EOQ model, if the size of order increases, the ________. A) carrying cost will increase B) order cost will remain unchanged C) order cost will increase D) storage cost will decrease ANSWER A
Date: September 19th, 2020
The ________ is an inventory management technique that compares production needs to available inventory balances and determines when orders should be placed for various material inputs. A) ABC system B) EOQ model C) MRP system D) JIT system ANSWER C
Date: September 19th, 2020
According to the Absolute Priority Rule (APR), the correct descending order of claim priority is: a. administrative claims; statutory priority claims; secured creditors’ claims; unsecured creditors’ claims; equity claims. b. equity claims; administrative claims; statutory priority claims; secured creditors’ claims; unsecured creditors’ claims. c. statutory priority claims; administrative claims; secured creditors’ claims; unsecured creditors’ claims; […]
Date: September 19th, 2020
