Benefits of global sourcing include ______.

A. higher costs
B. broader pool of suppliers and service providers
C. language and cultural barriers
D. slower time-to-market


B. broader pool of suppliers and service providers

Business

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Performance risk stems from the ______.

A. fluctuations in demand and inventory levels B. choice of company’s sourcing strategy C. ongoing quality and financial issues with the supplier D. supplier’s inability to meet delivery lead times

Business

In a problem involving capital budgeting applications, the 0-1 variables designate the acceptance or rejection of the different projects

Indicate whether this statement is true or false.

Business

An inventory turnover ratio of 8.5 times indicates that:

A. the inventory of the firm turns over after 8.5 days. B. the value of the inventory of the firm is 8.5 percent of the total assets of the firm. C. the value of sales of the firm is 8.5 times the cost of goods sold. D. the firm will restock its inventory every 42 days. E. the firm pays for its inventory once in 42 days.

Business

Alice and Tommy have 3 dependent children. Alice earns $125,000 per year. They are taking out insurance on Alice for the next 30 years. Tommy expects to get a 9.25% rate of return on the life insurance payoff

Using the earnings multiple approach calculate how much life insurance they need to take out on Alice. A) $987,440 B) $1,005,011 C) $1,105,447 D) $2,228,553 E) None of the above

Business