The Theory of Constraints Focuses on Which of the Following

question 39

Multiple Choice

The theory of constraints focuses on which of the following?

• A)throughput contribution.
• B)investments.
• C)other operating costs.
• D)All of the answers are correct.

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Definitions:

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a specific period, often calculated as the income and capital gains during the period.

Strike Price

The fixed price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a fixed period.

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain for a business or investment.