The Principle of General Average Gives a Ship's Captain an Incentive

question 37

True/False

The principle of general average gives a ship's captain an incentive to consider the value of cargo when jettisoning it to prevent a disaster.

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Definitions:

Holding Costs

The expenses associated with storing inventory, including warehousing, insurance, and depreciation.

Ordering

The process of requesting goods, services, or work to be provided or performed by another party.

Producing

The act of creating, manufacturing, or otherwise bringing into existence goods and services.

Purchase Requisition

An official request or document that a company uses to inform the purchasing department of items it needs to order.