Which of the Following Is a Consequence of Using Just-In-Time

question 70

Multiple Choice

Which of the following is a consequence of using just-in-time inventory systems?

• A)It slows down inventory turnover.
• B)It increases inventory holding costs.
• C)It increases the amount of working capital a firm needs.
• D)It can help firms improve product quality.
• E)It does not allow defective inputs to be spotted immediately.

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Definitions:

Merger Premium Per Share

The extra amount paid over the market price per share when one company acquires another.

Market Price

The active market price for exchanging assets or services between parties.

Equity-Financed

Refers to the method of funding a company or its operations through the sale of shareholder equity rather than debt.

Incremental Value

The additional value generated by undertaking a specific action or project, calculated as the difference between the value with and without the action.