Which of the Following Statements Does NOT Represent a Positive

question 78

Multiple Choice

Which of the following statements does NOT represent a positive link between supply chain performance and the financial status of a firm?

• A) Lowering the cost of purchased materials reduces the level of working capital required and has a positive impact on the contribution margin.
• B) Reduced inventory levels result in an increase in the percentage of partial orders shipped and an increased inventory turnover ratio.
• C) Percentage of orders shipped on time reduces the level of working capital required and supports increased sales.
• D) Reducing supplier lead times reduces the level of working capital required.

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Definitions:

U.S. Law

The legal system operational in the United States, consisting of both statutes and case law that regulates individuals, entities, and government.

Wholly Owned Subsidiaries

Companies that are completely controlled by another company, the parent company, owning 100% of the subsidiary's shares.

Multinational Enterprise

A large corporation that owns and controls production or delivers services in more than one country.

Foreign Corrupt Practices Act

A U.S. law that prohibits companies and their supervisors from bribing foreign officials to obtain or retain business.