Lean Focuses on Maximizing Profitability While Minimizing Waste in the Form

question 16

True/False

Lean focuses on maximizing profitability while minimizing waste in the form of the costs of quality (scrap,rework,and inspection).

---

Definitions:

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity and preferred equity, which is used to finance its overall operations and growth.

Economic Expansion

A phase of the business cycle where the economy grows and increases in activity, marked by rising GDP, employment, and income.

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profitability that includes all expenses except interest and income tax expenses.

Unlevered Firm

A company that operates without any debt financing, relying solely on equity for its financing needs.