Primary, secondary, and fringe trading areas for an existing store can be described on the basis of _____
a. trading-area overlap with existing stores
b. the average dollar purchases at a store by people from given geographic locales
c. customer attitudes
d. the frequency of large orders
b
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The document one business sends to another business that identifies the amount to be paid is:
a. check b. purchase requisition c. vendor invoice d. disbursement voucher
A company that creates economic value but exploits the environment and natural resources may ______.
a. run out of raw materials required for its operations b. overprice its products c. be forced to offer products of poor quality d. have high production costs
In the EPQ model, the total annual setup costs are given by ______.
A. (annual demand/EPQ) x setup cost B. (annual demand x EPQ) x setup cost C. (annual demand x EPQ)/setup cost D. (annual demand/EPQ)/setup cost
Suppose a firm uses both the net present value (NPV) technique and the internal rate of return (IRR) technique to evaluate two mutually exclusive capital budgeting projects. If a ranking conflict exists between NPV and IRR, which of the following criteria should be used to make the final investment decision?
A. The project with the higher IRR should be purchased. B. The project with an internal rate of return (IRR) equal to the firm's expected rate of return should be purchased. C. The project with the higher net present value (NPV) should be purchased. D. The project with the payback period equal to the expected years required to recover the original investment should be purchased. E. The project with the discounted payback period that is greater than its traditional payback period should be purchased.