Use the Following Information to Answer the Next 4 Questions

question 8

Multiple Choice

Use the following information to answer the next 4 questions:
Discount-Mart issues $10 million in bonds on January 1,2015.The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year.Below is a partial bond amortization schedule for the bonds:

-What is the stated annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six month rate. )

• A)3%.
• B)4%.
• C)6%.
• D)8%.

Recognize the importance and method of sorting issues through Pareto analysis.

Describe the cause-and-effect (Ishikawa) diagram and its application in identifying problem causes.

Explain the concept and significance of Six Sigma in quality management.

Recognize the role of quality circles and employee empowerment in quality improvement.

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Definitions:

Demand Shifts

Movements of the demand curve to the left or right in a market diagram, indicating a change in the amount consumers are willing and able to purchase at various prices.

Equilibrium Price

The cost at which the amount of a product or service that consumers want to buy matches the amount available for sale, leading to a state of equilibrium in the market.

Supply Shifts

Supply shifts refer to changes in the supply curve caused by factors other than price, such as technology, production costs, and supplier expectations, leading to different quantities being supplied at the same price.

Surplus

The situation in which the quantity of a good or service supplied exceeds the quantity demanded, often leading to lower prices.