A Manufacturer of Automatic Locking Devices Shipped 20,000 Devices to a Car

question 51

Multiple Choice

A manufacturer of automatic locking devices shipped 20,000 devices to a car manufacturer that was unable to use them because of a design flaw. If the manufacturer of the devices waited until the parts were returned before determining why it created unusable component parts, it would be using ____ control.

• A)feedforward
• B)feedback
• C)balanced
• D)dynamic
• E)concurrent

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Definitions:

Yield to Call

The return a bondholder can expect if the bond is held until the call date, before the bond's maturity.

Annual Coupon

The yearly interest payment made by a bond to its holder.

Par Value

A legal amount per share established by a company's charter, not necessarily related to market value, often used for accounting purposes.

Zero-Coupon Bond

A debt security that does not pay interest (coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its face value.