What Is a Common Method Used to Increase Capacity with a Lag

question 74

Multiple Choice

What is a common method used to increase capacity with a lag strategy?

• A)overtime
• B)subcontracting
• C)new facilities
• D)new machinery
• E)A and B

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Definitions:

Current Liability

A financial obligation that is due to be settled within one year or within the normal operating cycle, whichever is longer.

Bank Indebtedness

A financial term referring to the amount of debt a company has borrowed from banking institutions.

Highly Liquid

Assets that can be easily and quickly converted into cash without significant loss in value.

Trading Investments

Securities purchased and held primarily for selling them in the near term with the goal of generating short-term profits.