A Firm Generally Should Not Count on Collateral as the Primary

question 42

True/False

A firm generally should not count on collateral as the primary source of payment.

---

Definitions:

Six Sigma

A set of techniques and tools for process improvement aimed at reducing the probability of defect in manufacturing and business processes.

Defects Prevention

Strategies or actions taken to identify and mitigate potential flaws in products or services before they reach the consumer.

Zero Defects

A management philosophy aiming at reducing defects and ensuring quality by doing things right the first time.

Real Costs

The total cost of manufacturing or acquiring a product or service, including all expenses such as raw materials, labor, and overhead.