Which of the Following Is an Example of a Private

question 1

Multiple Choice

Which of the following is an example of a private finance initiative?

• A) The government pays an annual leasing fee to a private to build and own roads.
• B) A private firm issues an initial public offering (IPO) to raise funds to build a hospital.
• C) The government uses its tax revenues to build a bridge, which it owns.
• D) A private firm purchases a nationalized industry from the government.

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Definitions:

Production Lead Time

The total time required to manufacture an item, including order preparation, queue, setup, run, inspection, and put-away time.

Supply-Chain Management

The management of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.

Service Firms

Companies that provide intangible products or services to customers.

Vertical Integration

A strategy where a company expands its operations by moving into a different level of the supply chain, usually by acquiring or establishing its own suppliers or distributors.