Scenario 5.3: Wanting to Invest in the Computer Games Industry, You Select

question 144

Multiple Choice

Scenario 5.3:
Wanting to invest in the computer games industry, you select Whizbo, Yowzo and Zowiebo as the three best firms. Over the past 10 years, the three firms have had good years and bad years. The following table shows their performance:

-Refer to Scenario 5.3. Based on the 10 years' past performance, rank the companies' expected revenue, highest to lowest.

• A) Whizbo, Yowzo, Zowiebo
• B) Whizbo, Zowiebo, Yowzo
• C) Zowiebo, Yowzo, Whizbo
• D) Zowiebo, Whizbo, Yowzo
• E) Zowiebo, with Whizbo and Yowzo tied for second

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Definitions:

Service Level

A metric used to measure the quality of service provided, often reflecting the percentage of customer requests or orders fulfilled correctly and on time.

Quantity Discounts

Price reductions given to customers for purchasing large volumes of a product, aimed at encouraging bulk buying and increasing sales volume.

Cost-Minimizing Solution

A cost-minimizing solution is an economic strategy or method that aims to achieve the lowest possible cost while fulfilling certain conditions or requirements.

Annual Holding Costs

The total cost associated with storing and maintaining inventory over a year, including warehousing, insurance, and depreciation.