Which Statement About Supply Chains Is Best

question 5

Multiple Choice

Which statement about supply chains is best?

• A)New product development is not a supply chain function.
• B)If a supplier uses a shipping company to send product to a customer,the shipping company is technically not a supply chain member.
• C)Funds in a supply chain flow upstream only.
• D)Flows in a supply chain may be managed by an intermediary.

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Definitions:

Capital Budgeting

The process of planning significant investments in projects that have long-term implications such as the purchase of new equipment or the introduction of a new product.

Internal Rate

Commonly identified as the internal rate of return (IRR), this is the discount rate that sets the net present value (NPV) of all cash flows associated with a specific project to zero.

Discounted Cash Flow

A valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for time value of money.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity.