Which of the Following Statements About Operational Linkages Is FALSE

question 7

Multiple Choice

Which of the following statements about operational linkages is FALSE?

• A) Just-in-time is an example of an operational linkage.
• B) Operational linkages are direct ties between the internal operations of the buyer and seller firms.
• C) Operational linkages involve only occasional coordination of activities between buying and selling firms.
• D) None of these statements about operational linkages is FALSE.

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Definitions:

Sharpe Measure

A method to evaluate the risk-adjusted return of an investment, comparing portfolio excess return to the standard deviation of the portfolio.

Excess Returns

The return on an investment above the return expected from risk-free investments or the market's benchmark.

Risk-free Asset

An investment that is assumed to have no risk of financial loss, often exemplified by government bonds.

Kurtosis

A statistical measure that describes the shape of a distribution's tails in relation to a normal distribution, indicating the potential for extreme outcomes.