In a Demand-Pull System

question 161

Multiple Choice

In a demand-pull system

• A)production is triggered by a forecast.
• B)production is triggered by a customer order.
• C)production is triggered by a vendor shipment.
• D)production is triggered by an economic reorder point.

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Definitions:

Transferring Risk

Shifting potential financial loss to another party through mechanisms like insurance, hedging, or outsourcing, to manage vulnerability to risk.

Investing

The process of distributing funds or resources with the aim of earning a return or profit.

Interest Income

Income earned from deposit accounts or investments that pay interest, such as bonds and savings accounts.

Financial Assets

Assets that derive value from a contractual claim, such as stocks, bonds, bank deposits, and other investments.