As a Result of the Terrorist Attacks of September 11,2001,many

question 78

Multiple Choice

As a result of the terrorist attacks of September 11,2001,many firms have employed a wide range of tactics to ensure continued flow of inventory in the face of government steps to curb terrorism.Which of the following is an inventory sourcing strategy response (as opposed to an inventory management response,or a transportation response) ?

• A) carrying more inventory on-hand
• B) minimizing cross-border exposure from suppliers
• C) shifting to air cargo shipments instead of co-habitation of products and passengers on commercial air flights
• D) increasing the on-hand supply of critical parts

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Definitions:

Cost of Equity

The return that investors expect for investing in a company's equity, often calculated by the Capital Asset Pricing Model (CAPM).

Market Risk Premium

The additional return expected by investors for taking on the higher risk of investing in the stock market over a risk-free investment.

Overall Beta

A measure of the volatility, or systematic risk, of a portfolio in comparison to the market as a whole.

Division A

A specified branch or segment of a company, often focused on a particular type of product or service.