Which of the Following Best Explains 'Standard Design

question 53

Multiple Choice

Which of the following best explains 'standard design'? 

• A) Buyer decides to integrate a standard component in their product design and supplier is requested to submit a price proposal and production planning. 
• B) Supplier is responsible for submitting a prototype or sample for approval and testing. 
• C) The buyer communicates a rough design to the supplier to work out a detailed design and submit this for approval to the buyer.  When approved, the supplier is responsible for prototyping, testing and manufacturing. 
• D) Based upon functional specifications for a component or module, the supplier is responsible for conceptual design, prototype, testing and setting up production and assembly processes.

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Definitions:

Beta

An indicator of the level of fluctuation, or inherent risk, associated with a specific security or portfolio in relation to the overall market.

Perpetual Preferred Stock

A type of preferred stock with no fixed maturity date, offering dividends indefinitely without obligation of redemption by the issuer.

Flotation Cost

The total costs that a company incurs when it issues new securities, including underwriting, legal, and registration fees.

Annual Dividend

The total amount of dividends a company pays to its shareholders in one year, usually presented on a per share basis.