Nabisco Has Reduced Product Inventory Requirements from 49 Days to 22

question 147

Multiple Choice

Nabisco has reduced product inventory requirements from 49 days to 22 days.This frees up cash and warehouse space,adding flexibility to the plant.This seamless linking of Nabisco's strategic business units is accomplished through _____ integration.

• A) relationship
• B) social
• C) functional
• D) hierarchical
• E) internal operations

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Definitions:

Inflation Rate

The speed at which the overall price level of goods and services increases, leading to a decrease in buying power.

Risk-free Rate

The expected return from an investment that carries no risk of losing money, commonly linked to government bonds.

Exchange Rate

The price at which one currency can be exchanged for another currency.

Uncovered Interest Rate Parity

A condition in which the difference in interest rates between two countries equals the expected change in exchange rates between their currencies, without hedging.