Which of the Following Best Describes the Hidden Factory

question 12

Multiple Choice

Which of the following best describes the hidden factory?

• A) system that links together supplier and customer information systems
• B) non-value-chain activities having costs but no effect on the customer
• C) firms involved in outsourcing business activities
• D) disaggregation of a firm into its core activities
• E) value-chain activities that add value for the customer

---

Definitions:

Rationing Function

The ability of market prices to allocate scarce resources efficiently among competing uses.

Incentive Function

The inducement that an increase in the price of a commodity gives to sellers to make more of it available (and conversely for a decrease in price), and the inducement that an increase in price offers to buyers to purchase smaller quantities (and conversely for a decrease in price).

Loan Period

The duration of time from the initiation of a loan to its final due date, within which the borrower is expected to repay the borrowed amount along with interest.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.