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Business Policy Game Exercise, attachment below true or false Business Policy Game Exercise Information on any newly released product model, when available, will be given

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Business Policy Game Exercise, attachment below true or false

image text in transcribed Business Policy Game Exercise Information on any newly released product model, when available, will be given in the company's Operating Information Report. Select one: True False 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. Select one: True False following union contracts, all companies will pay second-shift workers at 1.2 times the normal hourly rate. Select one: True False If a company needs to get emergency loans, it will weaken the public's confidence in the company, thereby reducing demand for its product. Select one: True False Most companies are headquartered in Merica 1 but have a sales office and an active sales force in three different market areas. Select one: True False 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. Select one: True False If a plant is closed down, its equipment will be sold for 80 percent of book value. Select one: True False Stockouts can demoralize production and operations employees and decrease their productivity. Select one: True False With space additions, an existing plant can be expanded in size to house more than 12 production lines. Select one: True False The credit rating of a company will be automatically assessed by credit analysts every quarter based upon the firm's financial performance. Select one: True False The company's operating costs and expenses will all rise with inflation. Select one: True False 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. Select one: True False A second-shift line can be added at either a home-area plant or an overseas plant (if built) to raise production when needed. Select one: True False A company cannot have more than one plant in any of the four market areas the company serves. Select one: True False 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. Select one: True False 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. Select one: True False To avoid any potential confusion among customers, product quality and features can be changed only when a new model is introduced. Select one: True False Company policy limits any price change in domestic markets to a maximum of 40 percent per quarter. Select one: True False Stock outs may arise from unexpectedly high product demand, production disruptions or poor management of inventory in individual market areas. Select one: True False 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. Select one: True False

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