A Manufacturing Division Sets a Goal of Assembling 500 Units

question 168

Multiple Choice

A manufacturing division sets a goal of assembling 500 units per day. The division is unable to meet its goal and looks for ways to improve its process. The pressure for change is from:

• A) technological advances.
• B) life-cycle forces.
• C) aspiration-performance discrepancies.
• D) changes in external forces.
• E) none of the above.

Understand the concepts of simple and compound interest and how they affect loan and investment returns.

Calculate the present and future values of lump sum amounts, annuities, and perpetuities.

Understand how to calculate loan payments, balances, and the cost of borrowing.

Evaluate investment opportunities using present value and future value calculations.

---

Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.

Dissolved

The process of officially closing and ending the existence of a company or partnership.

Operating Agreement

An agreement in which the members of a limited liability company set forth the details of how the business will be managed and operated.

Limited Liability Company

A company organization style that merges the protective limited liability of corporations with the advantageous pass-through taxation of sole proprietorships or partnerships.