A Biotechnology Company Is Constantly Faced with Important Decisions That

question 105

Multiple Choice

A biotechnology company is constantly faced with important decisions that are likely to have severe consequences on the future of the company. The top managers should

• A) decentralize decision-making authority.
• B) appoint lawyers to make business decisions.
• C) train first-line managers to make these decisions.
• D) exercise centralized decision-making authority.
• E) consult investors when making important daily decisions.

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Definitions:

Average Inventory

The mean value of inventory over a certain time period, used for inventory management and planning.

Carrying Cost

The total cost of holding inventory, including storage, insurance, and obsolescence.

Net Present Value

A calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate.

Accounts Receivable Approach

A method for managing and analyzing a company's incoming payments or receivables from customers to whom it extends credit.