Answer: True
Explanation:
Six Sigma projects have eight essential phases which are to; 1. recognize
2. define
3. measure
4. analyze
5. improve
6. control
7. standardize and
8. integrate.
It is a method whose primary objective is improving profit making by improving quality and efficiency standards. Project teams utilising this method want to reduce variability in processes by actively seeking out potential sources of waste especially in overtime and warranty claims.
They also investigate production backlogs or areas in need of more capacity and focus on customer and environmental issues.
Answer:
A. True
Explanation:
Hedging transactions can be described as derivative that are purchased in order to reduce investment risk of investments by using options, futures or forward contracts as insurance.
A futures market refers to a central financial exchange where standardized futures contracts are bought and sole as defined by the exchange.
Generally, positive net present value (NPV) is yielded by hedging. But the NPV will be zero or even slightly negative as when the market becomes active about the future.
Based on this explanation, the correct option is <u>A. True</u>. That is, hedging transactions in an active future market have zero.
Answer:
When the goods or services are provided to customers.
Explanation:
Revenue recognition principle requires that the revenue berocorded when goods or services associated with it are delivered or performed. If you receive cash for the services to be performed then ot should not be recorded in the revnue until you provide the services. You should recorded it as the deffered income in the books.
Answer:
1a. Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk-free investments.
Identification: U.S. Treasury Bills (T-bills)
b. Issued by money-centered financial firms, these short- or medium-term insured debt instruments pay higher interest than a regular savings account. They are low-risk instruments and have low returns.
Identification: Certificate of deposit
c. These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated.
Identification: Money Market Mutual Fund
d. These financial instruments are contractual agreements that give one party a long-term agreement to use an asset by providing regular payments.
Identification: Lease Agreement
2. The instruments which are traded in capital markets are Common Stock, Preferred Stock, Corporate Bonds and Certificates of deposits excluding Long-term bank loans.
3. The process in which derivatives are used to reduce risk exposure is called <u>hedging</u>.
Answer: Option (c) is correct.
Explanation:
Option (c) is not a disadvantage of a divisional type of organizational structure. All the other options are the disadvantages of a divisional organizational structure.
The divisional structure has drawbacks, including conceivably scattering specialized ability and skill or fostering unfortunate competitions among divisions. The divisional structure likewise may build costs by requiring useful pros and better qualified administrators for every division. Additionally, on the grounds that there is an overemphasis on divisional as opposed to organizational objectives, the divisional structure may bring about copying assets and endeavors -, for example, staff administrations, offices and work force - crosswise over divisions.
