Multiple Choice (each question can have 0, 1, 2, 3 or 4 answers; 1 point for each correct answeron-answer, +1 point for a complete correct set)

16. Just in time inventory: III) requires a quick payment of accounts payable III) is a production strategy that attempts to improve a firm's return on investment by reducing inprocess inveatory and associated carrying costs as much as possible KKK) is a type of operations management designed to minimize operational capital LLL) maintains extra inventory on hand in the event of supplier disruption 17. The operating cyde: MMM)(inventory 365/ cost of goods sold) (accounts receivable 365/ NNN) is equal to the days sales in inventory plus the average collection 000) inventory 365/cost of goods sold) (accounts payable 365/ PPP) is the time required to acquire raw materials and to produce, sell, and cash collected) period credit sales) receive payment for the finished goods 18. Carrying costs 00Q) include the opportunity costs associated with having capital tied up in current assets instead of more productive fixed assets RRR) include explicit costs necessary to maintain the value of the current assets SSS) move in the same direction as shortage costs TTT) move in the opposite direction as shortage costs 19. Asset-based loans: UUU) are loans that are directly tied to the liabilities and equity of a firm VV) are short-term loans secured by a company's assets www) are unsecured loans, not requiring any collateral xxx) equal liability-based loans plus equity-based loans 20. When firms have surplus cash: YYY) ZZZ) AAAA) BBBB) they can save up for unexpected expenditures they can choose to invest in marketable securities they can distribute to shareholders in the form of dividends they can elect to pay debt early