Answer:
The bullwhip effect happens when retailers or other members of the supply chain overestimate a sudden increase in demand, and this causes a chain reaction in all the other participants of the supply chain that start requesting higher quantities of goods or materials for production. E.g. the fidget spinner was a very popular fad and its producers probably didn't anticipate how large the demand would be. Once the product became extremely popular, everyone wanted to sell fidget spinners. This caused an increase in the order quantities of all the supply chain. Once the fad faded out, all this momentum stopped and many stores, distributors, wholesalers, and even factories were left with huge unsold stocks of fidget spinners.
When the supply chain is well coordinated, there is little chance for some retailers or distributors to over react and want more product just in case. If your supply is guaranteed, then it would take some extraordinary increase in demand to make you want to increase your purchase orders. But if your supply chain is not well coordinated, you might fear that you will lose a lot of sales and other competitors will make them. Then you get anxious and start ordering large quantities.
Answer:
The correct answer is letter "D": set aside any award.
Explanation:
Arbitrators are individuals without the range of judges that are called in disputes to resolve a matter before taking it to court. Similar to trials, each party involved in the dispute present their defense in front of the arbitrator who promotes the mutual agreement between the two parties but, if that does not happen, the arbitrator provides a resolution that tends to be definite.
<em>Arbitrators must be impartial. Thus, if the arbitrator meets with one of the parties and, eventually, the decision of that case favors that party, the court can take away any reward provided until an investigation is conducted.</em>
Answer:
The correct answer is letter "A": cumulative preferred stock that have been declared but have not been paid.
Explanation:
Dividends in arrears are dividends that have not been paid in a period on cumulative preferred stock. A company does not necessarily have to pay dividends to its shareholders but the payment becomes cumulative. Under this situation, it is said that the organization has failed to generate enough cash during the year. Besides, there must be a dividend declaration for the dividends in arrears to be liable recognized.
Answer:
A) Both the present value and future value would increase.
Explanation:
If the compounding frequency increases, then both the present value and the future value will increase because the effective annual rate will increase. E.g. interest used to be compounded every 6 months, now it is compounded monthly.
Both the present value and the future value vary jointly, if the present value decreases, then the future value will also decrease, and vice versa.
Answer:
The Asset is a Qualifying Asset.
Explanation:
Qualifying Assets take substantial period of <em>time</em> to get ready for its intended use and purpose and that will require capitalizing interest costs or borrowing cost to the asset.
