Which of the Following Statements Is False

question 16

Multiple Choice

Which of the following statements is false?

• A)with respect to stockouts,a delayed sale is virtually costless because of the customer's brand loyalty
• B)the higher the average cost of a stockout,the more inventory
• C)tradeoffs exist between carrying costs and stockout costs
• D)stockouts can be more costly than having too many items in stock
• E)all are true

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Definitions:

Shareholder Approval

The process by which a corporation's shareholders vote on and approve certain corporate actions or decisions.

Revised MBCA

An updated version of the Model Business Corporation Act, which provides a template for state laws regulating the formation, operation, and dissolution of corporations.

Voting Rule

A set of regulations determining the number of votes needed for a proposal to pass, often found in legislative bodies or on boards of directors.

Fundamental Changes

Significant alterations to the core aspects or operations of a company or organization, often requiring approval from shareholders or board members.