E&OE wants to minimize inventory costs as far as possible. Explain one way by which it can achieve a near-zero inventory
What will be an ideal response?
Manufacturers can achieve a near-zero inventory by building for order, not for stock, i.e., manufacturing a product only when it receives an order.
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Which of the following is most likely a true statement about sales compensation in economically tough circumstances?
A) Cutting sales force compensation is usually a last resort for firms that want to maintain positive customer relationships. B) Morale is boosted by distributing commissions equally among low and high sales performers. C) Online selling is discontinued to improve customer relations. D) Compensation for the inside sales force is reduced to increase commissions for the outside sales force. E) Low performers are retained and top performers are dismissed to reduce commission payments.
If a U.S. company enters into a purchase agreement with a European company and the contract is
denominated in euros, then direct exchange rate risk exists for both companies. Indicate whether the statement is true or false
A tenancy at sufferance is created after the tenant's lease has expired
Indicate whether the statement is true or false
A foreign currency ________ gives the purchaser the right, not the obligation, to buy a given amount of foreign exchange at a fixed price per unit for a specified period
A) future B) forward C) option D) swap