Which of the Following Is True About Companies That Have

question 73

Multiple Choice

Which of the following is true about companies that have implemented postponement strategies?

• A)increased inventory
• B)increased number of outdated products
• C)increased range of customized products
• D)increased supply demand mismatches

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Definitions:

Covenants

Agreements or promises in a formal loan or bond agreement that cover certain conditions, actions, or restrictions taken by the borrower.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.

Dividend

A portion of a company's earnings, decided by the board of directors, to be distributed among shareholders, typically in the form of cash payments or additional shares.

Net Profits

The amount of money left over after all expenses, taxes, and deductions are subtracted from a company's total revenue.