1. Information on any newly released product model, when available, will be given in the company's Operating Information Report.

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True

False

1a..Before a new product model officially goes on sale, any unsold units of the old model will be automatically sold to a liquidation firm at below book value.

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True

False

2.following union contracts, all companies will pay second-shift workers at 1.2 times the normal hourly rate.

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True

False

3.If a company needs to get emergency loans, it will weaken the public's confidence in the company, thereby reducing demand for its product.

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True

False

4. Most companies are headquartered in Merica 1 but have a sales office and an active sales force in three different market areas.

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True

False

5. A company may draw against a line of credit (up to $2,000,000) by floating a 3-month bank loan. Interest will be charged at the short-term rate available during the quarter the loan is issued.

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True

False

6. If a plant is closed down, its equipment will be sold for 80 percent of book value.

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True

False

7. Stockouts can demoralize production and operations employees and decrease their productivity.

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True

False

8. With space additions, an existing plant can be expanded in size to house more than 12 production lines.

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True

False

9. The credit rating of a company will be automatically assessed by credit analysts every quarter based upon the firm's financial performance.

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True

False

10. The company's operating costs and expenses will all rise with inflation.

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True

False

11. Subsidiaries will get reimbursed by their parent company for any expenses they incur for storing goods in a public warehouse in their own market area.

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True

False

12. A second-shift line can be added at either a home-area plant or an overseas plant (if built) to raise production when needed.

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True

False

13. A company cannot have more than one plant in any of the four market areas the company serves.

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True

False

14. A company with a superior credit rating can issue and sell new shares of common stock at a price at least 20% higher than what it would get if the company had just an average credit rating.

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True

False

15. If a company's actual total production exceeds total sales office orders, the surplus output will be shipped out to all the sales offices on a prorated basis according to their relative size of orders.

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True

False

16. To avoid any potential confusion among customers, product quality and features can be changed only when a new model is introduced.

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True

False

17. Company policy limits any price change in domestic markets to a maximum of 40 percent per quarter.

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True

False

18.Stock outs may arise from unexpectedly high product demand, production disruptions or poor management of inventory in individual market areas.

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True

False

19. Product demand has consistently displayed a strong seasonal pattern, with sales being the highest in the fourth quarter and lowest in the first quarter of each year.

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True

False