In Acceptance Sampling, If the Number of Defects in a Sample

question 75

True/False

In acceptance sampling, if the number of defects in a sample is less or equal to the acceptance number, then the incoming lot is accepted.

---

Definitions:

Pre-emptive Rights

The right of existing shareholders in a company to have the first opportunity to purchase new shares issued by the company, to maintain their proportionate ownership.

Logging Operation

The process of cutting down trees, removing them from the forest, and transporting the logs to be processed into lumber or other wood products.

Shareholders Agreement

A contract among the shareholders of a company detailing their rights, obligations, and the management of the company.

Salomon v. Salomon

A foundational company law case from the UK, establishing the principle that a corporation has a separate legal personality, distinct from its shareholders.