A Company Would Like to Eliminate Unnecessary Returns And/or Minimize

question 120

Multiple Choice

A company would like to eliminate unnecessary returns and/or minimize handling. It designs a process to check and screen merchandise at the entry point into the organization. This is an example of:

• A) defect reduction
• B) avoidance
• C) gatekeeping
• D) asset recovery

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Definitions:

Total Equity

Represents the value left in a company after all liabilities have been subtracted from assets, essentially the net assets owned by shareholders.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Long-term Debt

Loans and financial obligations lasting more than one year, often used to finance capital investments or operations.