Maintaining a Constant Production Level in a Firm Has the Advantage

question 64

Multiple Choice

Maintaining a constant production level in a firm has the advantage of:

• A)Minimizing the amount of inventory held.
• B)Allowing a stable employment level.
• C)Meeting customers' changing expectations.
• D)Supporting the organization's move to JIT (just-in-time).
• E)Allowing the firm to compete successfully as a differentiator.

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Definitions:

Return on Assets (ROA)

A financial ratio that shows how profitable a company is relative to its total assets, indicating how efficient management is at using its assets to generate earnings.

Return on Net Worth

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Financial Metric

A quantifiable measure used to assess the financial performance and health of a business entity.

Stock Price

The current price for which a share of a company is bought or sold on the stock market.