Which One of the Following Conditions Favors a Level Strategy

question 86

Multiple Choice

Which one of the following conditions favors a level strategy for manufacturing firms?

• A) high availability of workers
• B) short shelf life of inventory
• C) highly automated equipment and a make-to-stock strategy
• D) high inventory-holding cost

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Definitions:

Short-Term Debt

Obligations or loans that are due to be paid back within a short period, typically one year or less.

Long-Term Debt

Borrowings and financial obligations lasting over one year, used to finance operations or acquisitions.

Capital Budgeting

The method by which a business analyzes prospective large-scale projects or investments.

Borrowing Power

The maximum amount of money a person or entity can borrow based on their financial situation.