The Operations Function Needs to Interface with Which Organizations

question 41

Multiple Choice

The operations function needs to interface with which organizations?

• A)government agencies or regulatory organizations to comply with given rules and regulations
• B)competitors so as to be able to fix prices to ensure good margins on products and services
• C)the agencies of the United Nations to ensure compliance with global regulations
• D)agencies representing consumers to ensure that consumer wants are satisfied

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Definitions:

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis.

Gordon Model

A mathematical model for valuing stock based on an assumed constant growth rate into the indefinite future.

Cost Of Retained Earnings

The opportunity cost for shareholders of having a company retain and reinvest earnings rather than distributing them as dividends, often approximated by the expected return on equity.

Dividend

A portion of a company's earnings that is paid to shareholders, typically on a quarterly basis, as decided by the board of directors.