An Approach to Risk Management That Requires Time and Relationship

question 129

Multiple Choice

An approach to risk management that requires time and relationship building is

• A) Increasing safety stocks and forward buying
• B) Identifying backup suppliers and logistics services
• C) Diversifying the supply base
• D) Utilizing a supply chain IT system

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Definitions:

Preferred Stock

A type of stock that provides dividends to its holders before common stocks and has priority over common stock in the event of a liquidation.

Tax Deductible

Expenses that can be subtracted from gross income to reduce the overall amount of income tax owed to the government.

Gordon Model

A financial model that evaluates a stock's intrinsic value, based on future series of dividends that grow at a constant rate.

Growth Rate Assumption

An estimated rate at which a variable, such as a company's revenue or the economy's GDP, is expected to grow.