What Are Operational Business Processes

question 134

Multiple Choice

What are operational business processes?

• A)Dynamic, nonroutine, long-term business processes such as financial planning, expansion strategies, and stakeholder interactions.
• B)Semidynamic, semiroutine, monthly business processes such as resource allocation, sales strategy, or manufacturing process improvements
• C)Static, routine, daily business processes such as stocking inventory, checking out customers, or daily opening and closing processes.
• D)None of the above

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Definitions:

T-bills

Treasury bills, short-term debt obligations issued by the government with a maturity of less than a year, considered risk-free.

Option

A financial derivative that gives the holder the right, but not the obligation, to buy or sell an asset at a set price within a specific period.

Firm Completion

A commitment to finish a project or deliver a product by a specified date.

Asymmetric Information

Assumes managers have more complete information than investors about a firm’s prospects—can have an important effect on capital structure.