Which of the Following Is True About a Lagging Strategy

question 40

Multiple Choice

Which of the following is true about a lagging strategy?

• A)The most aggressive strategy for capacity expansion is a lagging strategy.
• B)When a company pursues a lagging strategy,it increases its capacity only when there is a sizeable increase in demand.
• C)With a lagging strategy the firm is most likely to have idle capacity or excess inventories.
• D)The firm is able to adapt quickly to changes in demand.

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Definitions:

Executor

An individual appointed to administer the estate of a deceased person, managing the distribution of assets according to the will.

Minor's Section 2503(c) Trust

A trust set up for the benefit of a minor according to Section 2503(c) of the Internal Revenue Code, allowing gifts to be made to the trust without incurring gift taxes.

Qualified Terminable Interest Property Trust

A type of trust that allows an individual to transfer assets to a surviving spouse tax-free upon their death, while controlling the distribution of the estate after the spouse's death.

Uniform Probate Code

A set of laws designed to simplify the probate process and standardize the distribution of an individual's estate across the United States.