Which of the Following Statements Is NOT True Regarding Supply

question 8

Multiple Choice

Which of the following statements is NOT true regarding supply chain operations?

• A)All elements of the supply chain are interconnected and dependent on each other.
• B)Demand changes by the end user can create a bullwhip effect in the supply chain.
• C)With perfect information at all levels of the supply chain,there will not be a bullwhip effect.
• D)Time lags in the supply chain serve to create fluctuations in orders and inventories.
• E)None of the above

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Definitions:

Net Assets

The total assets of a company minus its total liabilities; a measure of its financial health and value.

Equity

The value of an owner's interest in a property or business, calculated as the difference between the total assets and total liabilities.

Liabilities

Liabilities are obligations arising from past transactions expected to lead to an outflow of resources embodying economic benefits.

Accounting Equation

Represents the foundational principle of double-entry bookkeeping, stating that assets equal liabilities plus equity, serving as the basis for all accounting systems.