As the Number of Facilities in a Supply Chain Increases

question 88

Multiple Choice

As the number of facilities in a supply chain increases

• A)the inventory and resulting inventory costs also increase.
• B)the inventory and resulting inventory costs decrease.
• C)the inventory increases and resulting inventory costs decrease.
• D)the inventory decreases and resulting inventory costs increase.

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of another company, but not control them.

Voting Stock

Shares that give the holder the right to vote on corporate matters, such as electing the board of directors and approving corporate policies.

Controlling Investor

An individual or entity that holds a significant portion of a company's shares or voting rights, granting them substantial influence or control over the company's decisions and policies.

Investee

A company in which an investor holds a minor equity or debt stake, implying a level of influence but not full control.