Which of the Following Is True of Logistics

question 79

Multiple Choice

Which of the following is true of logistics?

• A) Shaving off a small fraction of logistics costs has very little impact on savings.
• B) Companies can gain a powerful competitive advantage by using improved logistics to enhance customer service or lower prices.
• C) The cost savings to a company and its customers due to improved logistics is typically nominal.
• D) Less than 5 percent of an average product's price is accounted for by shipping and transport.
• E) The cost of logistics is considerably less than advertising.

Understand the empirical evidence supporting differences in risk-adjusted returns among firms of varying sizes.

Grasp the concepts of market anomalies such as the reversal effect and how they challenge the Efficient Market Hypothesis (EMH).

Comprehend the different forms of the Efficient Market Hypothesis and their implications for market predictability.

Acknowledge the strategies employed in passive management and their basis in market efficiency theories.

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Definitions:

Chain of Command

The formal line of authority, shown within an organization, where commands are passed down from one level to the next.

Administrator

A manager in a public or nonprofit organization.

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner.

Henry Mintzberg

A renowned management theorist known for his work on business strategy and organizational structures.