Which of the Following, While Desirable from Some Perspectives, Might

question 86

Multiple Choice

Which of the following, while desirable from some perspectives, might actually increase the risk of supply chain reductions?
(I) fewer supply chain partners
(II) a shorter supply chain
(III) greater supply chain visibility

• A) I and II only
• B) II and III only
• C) I and III only
• D) I only
• E) I, II, and III

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Definitions:

IFRS

International Financial Reporting Standards; a set of accounting standards developed by the International Accounting Standards Board (IASB) aiming at standardizing financial reporting across the globe.

Liquidity

A measure of a company's ability to pay off its short-term liabilities with its available cash and quick assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle if longer.

Operating Cycle

The average period of time it takes for a business to convert its inventory into cash through sales.