Which of the Following Statements About Theoretical Capacity Is Best

question 46

Multiple Choice

Which of the following statements about theoretical capacity is best?

• A)Theoretical capacity allows adjustments for preventive maintenance.
• B)Running a factory at its theoretical capacity for a short time is often better than permanently raising resource levels.
• C)Theoretical capacity levels are usually lower than rated capacity levels.
• D)Theoretical capacity levels take into account that machines occasionally break and that workers occasionally call in sick.

Understanding the characteristics and implications of issuing preference shares.

Knowledge of dividend policies and their effect on preference and ordinary shares.

Understanding financial mechanisms corporations use to manage shares and shareholder equity.

Ability to calculate dividends and understand the impact on shareholders.

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Definitions:

Productivity

The assessment of how effectively a person, machine, factory, or system can transform inputs into valuable outputs.

Labor Input

Refers to the total hours worked or the number of employees engaged in production in the economy.

Goods and Services

The tangible products (goods) and intangible activities (services) that satisfy human wants and needs and are offered in the market.

Market Economy

An economic system in which production and prices are determined by unrestricted competition between privately owned businesses.