Which of the Following Statements Is True About the Bullwhip

question 40

Multiple Choice

Which of the following statements is true about the bullwhip effect?

• A) It forces suppliers and manufacturers to carry smaller inventories than necessary.
• B) It is a natural dynamic that occurs because of the multistage nature of the supply chain.
• C) It is strongly associated with erratic consumer demand.
• D) It increases the overall profitability of the supply chain.

Understanding the characteristics and implications of issuing preference shares.

Knowledge of dividend policies and their effect on preference and ordinary shares.

Understanding financial mechanisms corporations use to manage shares and shareholder equity.

Ability to calculate dividends and understand the impact on shareholders.

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Definitions:

Producer Surplus

The disparity between the minimum amount producers are prepared to take for a product or service and the higher amount they end up getting.

Blockade

An act of sealing off a place to prevent goods or people from entering or leaving, typically implemented as a form of economic or military pressure.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive.

Autarky

A financial strategy or condition where a nation is independent and refrains from participating in global commerce.