New Projects Can Have Multiple Effects on a Firm

question 30

Multiple Choice

New projects can have multiple effects on a firm.Which one of the following appears to be a positive indirect effect?

• A) Additional working capital will be required at the start of the project.
• B) The sales force will need to be increased over the life of the project.
• C) Sales of replacement parts are expected in the future.
• D) The cost of employee benefits will increase due to new hires.

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Definitions:

Supplier Stage

A phase in the supply chain that involves the provision of materials or services by suppliers to manufacturers or businesses.

Customer Stage

A phase within the customer journey or buying process, ranging from initial awareness to post-purchase evaluation and loyalty.

Inventory Costs

Expenses associated with holding and managing stock, including costs of storage, insurance, and depreciation.

Supply Chain

A Supply Chain encompasses the entire process of making and selling commercial goods, including raw materials, manufacturing, distribution, and the sale of the finished product.