As a Piece of Equipment Begins to Break Down More

question 2

Multiple Choice

As a piece of equipment begins to break down more often, the manager is often faced with a trade-off in which __________ are weighed against the __________.

• A) failure rates; maintenance probabilities
• B) maintenance intervals; maintenance programs
• C) operating costs; variable costs
• D) replacement costs; continued maintenance costs
• E) fixed costs; maintenance costs

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Definitions:

Fraud in the Inducement

A deceitful practice intended to convince someone to enter into a contract or agreement under false pretenses.

Relied

The act of depending on or trusting in something or someone.

False Representation

The act of deliberately presenting false information or deceiving others about a fact, product, or situation.

Arm's Length Transaction

An arm's length transaction is a deal in which the buyers and sellers of a product act independently and have no relationship to each other, ensuring that both parties act in their own self-interest.