Which of the Following Statements Is True

question 32

Multiple Choice

Which of the following statements is true?
I. Throughput is the total volume of production passing through a facility.
II. Throughput is controlled by the total capacity of a system.
III. Work centers feeding bottlenecks should be 100% utilized.

• A) I only is true
• B) I and II only are true
• C) II and III only are true
• D) II only is true
• E) III only is true

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Definitions:

Par-Value

The face value of a bond or stock, representing the amount that the issuer agrees to repay at maturity or the nominal value of a share, respectively.

Duration

A measure of the sensitivity of a bond's price to changes in interest rates, essentially a weighted average of the time until cash flows are received.

Coupon Bond

A type of bond that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date, when the principal amount is repaid.

Maturity

The expiration date of a financial instrument, at which point the principal (and all remaining interest) is due to be paid.