Which One of the Following Statements About Maintenance Is true

question 78

Multiple Choice

Which one of the following statements about maintenance is true?

• A) The optimal degree of preventive maintenance is associated with zero breakdowns.
• B) Breakdown maintenance is proactive.
• C) Preventive maintenance is reactive.
• D) Preventive maintenance is limited to keeping machinery and equipment running.
• E) Human resources are a major component of effective maintenance management.

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Definitions:

Firm's Performance

A measure of how well a company is doing in terms of profitability, revenue generation, and efficiency in managing its assets and liabilities.

Discretionary Accounting

The practice of using judgment in financial reporting and making decisions on accounting policies where alternatives exist.

Covenant Violations

Occurrences when a borrower fails to meet the terms of a loan agreement, potentially leading to penalties or loan default.

Current Ratio

A financial metric that evaluates a firm's capacity to settle debts due within a year by comparing its current assets to its current liabilities.