An Advantage of JIT Is That It

question 13

Multiple Choice

An advantage of JIT is that it:

• A)reduces costly inventories.
• B)maintains minimum inventory.
• C)helps the company's cash flow.
• D)All of the above

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Definitions:

Call Provision

A clause in a bond or other fixed-income security that allows the issuer to repurchase and retire the debt before its maturity date.

Coupon Rate

The interest rate stated on a bond, which is the percentage of the bond's face value that is paid out annually as interest to the bondholder.

Yield to Maturity

The total return anticipated on a bond if held until it matures, including all coupon payments and the return of the principal amount.

Coupon Rate

The interest rate stated on a bond when issued, which represents the amount of interest the bondholder receives, typically paid annually or semi-annually.