A Supplier That Guarantees 100% Conforming Parts to Customers Even

question 11

True/False

A supplier that guarantees 100% conforming parts to customers even though production yield at its plant is only 60% is a good candidate for supplier certification.

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Definitions:

Personal Property

Tangible, movable goods (chattels) and intangible claims (choses in action).

Chattels

Tangible, movable personal property that can be measured and weighed; also known as goods.

Fixtures

Items that are attached to a property in such a way that they become part of the property and cannot be removed without permission.

Continuing Guarantee

A provision in a guarantee allowing the creditor to advance further funds without affecting the obligation of the guarantor to pay in the event of default.