Firms Often Use Multiple Suppliers for Important Components to Mitigate

question 45

True/False

Firms often use multiple suppliers for important components to mitigate the risks of total supply disruption.

---

Definitions:

Total Equity

The total net worth of a company, calculated as total assets minus total liabilities; represents the owners' claim after debts have been paid.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, demonstrating the profitability of a company.

P/E Ratio

The price-to-earnings ratio, a valuation measure comparing the current share price of a company to its per-share earnings.

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including those held by institutional investors and restricted shares held by company insiders.