External Failure Activities

question 105

Multiple Choice

External failure activities:

• A) seek to prevent defects in the products or services being produced.
• B) inspect inputs and attributes of individual units of products or services to detect whether they conform to specifications or customer expectations.
• C) correct defective processes or products and services before they are delivered to customers.
• D) are activities required after defective products or services are delivered to customers.

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Definitions:

Full Amount

The total, complete sum of money owed or required in a transaction.

Accommodation Party

A person who signs a negotiable instrument on behalf of another, guaranteeing payment without receiving any personal benefit.

Primary Liability

The main or direct obligation to repay a debt or fulfill a contractual duty, without relying on secondary sources for payment.

Maker

In legal and financial contexts, it refers to the person who creates or signs a promissory note, thus agreeing to pay the note's value.