The inventory turnover rate for a firm is 14.5 as compared to the relevant industry rate of 13.2. In this case, the firm is
A) selling its inventory slower than the industry.
B) underperforming the industry.
C) averaging fewer days of sales in inventory than the industry.
D) generating fewer sales per dollar of inventory.
Answer: C
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A trucking company plans to buy 100,000 gallons of diesel fuel in January. The spot market price is 2.40/gallon. The company can remove its risk by entering today into a (cash settled) forward contract at $2.50/gallon, whereby it receives from the counterparty the difference between 2.50 and the spot price in January (x100,000) if the spot price is above 2.50, and pays the difference if it is below 2.50.
a. true b. false
In some environments, it is very difficult to dispose of used products
Explain what special types of disposal problems are created by densely populated areas and what type of business could be created in Manhattan, New York or Hong Kong that would take advantage of this difficulty.