Which of the Following Statements Is True

question 61

Multiple Choice

Which of the following statements is true?

• A)Third-party logistics companies demand only a few activities from third-party logistics providers.
• B)The decision to use third-party logistics can only be strategic in nature.
• C)Third-party logistics is synonymous with fourth-party logistics.
• D)A common cause of third-party logistics failure is unreasonable and unrealistic expectations.

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Definitions:

Present Value Factors

The numerical values used to calculate the present value of future cash flows, based on a specific discount rate.

Desired Rate of Return

The minimum rate of return on an investment that an investor considers acceptable, given its risk and alternative options.

Present Value Index

A ratio used to evaluate the relative profitability of an investment or project by comparing the present value of cash inflows to the present value of cash outflows.

Interest

The charge for borrowing money, typically expressed as an annual percentage rate, or the income earned from lending funds.