Little's Law Can Only Be Used When

question 60

Multiple Choice

Little's law can only be used when

• A) the average inventory rate is equal to the average flow rate
• B) the average inflow rate would be equal to the average outflow rate
• C) the average inflow rate would be greater than the average outflow rate
• D) the average inflow rate would be lesser than the average outflow rate

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Definitions:

Publicly Traded

A company is described as publicly traded when its shares are bought and sold on public stock exchanges.

Statement of Cashflow

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Preferred Shares

A type of stock that provides a fixed dividend and has priority over common stock in the event of a company's liquidation.