Which of the Following Is not a Concern of Suppliers

question 122

Multiple Choice

Which of the following is not a concern of suppliers as they prepare to enter into JIT partnerships?

• A) Suppliers feel that they would be less at risk if they contracted with more than one customer.
• B) Suppliers are concerned that customers will present frequent engineering changes with inadequate lead time to deal with them.
• C) Suppliers feel that their processes are suited for larger lot sizes than the customer wants.
• D) Suppliers are concerned that frequent delivery of small quantities is economically prohibitive.
• E) All of the above represent JIT supplier concerns.

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Definitions:

Bond Indenture

The underlying contract between the company issuing bonds and the bondholders.

Bond Premium

The additional amount over the face value for which a bond is sold, representing the difference between the bond's issue price and its nominal value.

Straight-line Amortization

A method of evenly spreading the cost of an intangible asset over its useful life for accounting and tax purposes.

Unamortized Premium

The portion of the premium paid over the par value of bonds that has not yet been amortized or written off over the life of the bond.