财务管理Chap001习题

Chapter01IntroductiontoCorporateFinanceMultipleChoiceQuestionsThepersongenerallydirectlyresponsibleforoverseeingthetaxmanagement,costaccounting,financialaccounting,andinformationsystemfunctionsisthe:treasurer.director.controller.chairmanoftheboard.chiefexecutiveofficer.Thepersongenerallydirectlyresponsibleforoverseeingthecashandcreditfunctions,financialplanning,andcapitalexpendituresisthe:treasurer.director.controller.chairmanoftheboard.chiefoperationsofficer.Theprocessofplanningandmanagingafirm'slong-terminvestmentsiscalled:A.workingcapitalmanagement.B.financialdepreciation.C.agencycostanalysis.D.capitalbudgeting.E.capitalstructure.Themixtureofdebtandequityusedbyafirmtofinanceitsoperationsiscalled:A.workingcapitalmanagement.B.financialdepreciation.C.costanalysis.D.capitalbudgeting.E.capitalstructure.Themanagementofafirm'sshort-termassetsandliabilitiesiscalled:A.workingcapitalmanagement.B.debtmanagement.C.equitymanagement.D.capitalbudgeting.E.capitalstructure.Abusinessownedbyasingleindividualiscalleda:corporation.soleproprietorship.generalpartnership.limitedpartnership.limitedliabilitycompany.Abusinessformedbytwoormoreindividualswhoeachhaveunlimitedliabilityforbusinessdebtsiscalleda:corporation.soleproprietorship.generalpartnership.limitedpartnership.limitedliabilitycompany.Thedivisionofprofitsandlossesamongthemembersofapartnershipisformalizedinthe:A.indemnityclause.B.indenturecontract.C.statementofpurpose.D.partnershipagreement.E.groupcharter.Abusinesscreatedasadistinctlegalentitycomposedofoneormoreindividualsorentitiesiscalleda:corporation.soleproprietorship.generalpartnership.limitedpartnership.unlimitedliabilitycompany.Thecorporatedocumentthatsetsforththebusinesspurposeofafirmisthe:A.indenturecontract.B.statetaxagreement.C.corporatebylaws.D.debtcharter.E.articlesofincorporation.Therulesbywhichcorporationsgovernthemselvesarecalled:bylaws.articlesofincorporation.Abusinessentityoperatedandtaxedlikeapartnership,butwithlimitedliabilityfortheowners,iscalleda:A.limitedliabilitycompany.B.generalpartnership.C.limitedproprietorship.D.soleproprietorship.E.corporation.13.Theprimarygoaloffinancialmanagementisto:A.maximizecurrentdividendspershareoftheexistingstock.B.maximizethecurrentvaluepershareoftheexistingstock.C.avoidfinancialdistress.D.minimizeoperationalcostsandmaximizefirmefficiency.E.maintainsteadygrowthinbothsalesandnetearnings.Aconflictofinterestbetweenthestockholdersandmanagementofafirmiscalled:A.stockholders'liability.B.corporatebreakdown.C.theagencyproblem.D.corporateactivism.E.legalliability.Agencycostsreferto:A.thetotaldividendspaidtostockholdersoverthelifetimeofafirm.B.thecoststhatresultfromdefaultandbankruptcyofafirm.C.corporateincomesubjecttodoubletaxation.D.thecostsofanyconflictsofinterestbetweenstockholdersandmanagement.E.thetotalinterestpaidtocreditorsoverthelifetimeofthefirm.16.Astakeholderis:A.anypersonorentitythatownssharesofstockofacorporation.B.anypersonorentitythathasvotingrightsbasedonstockownershipofacorporation.C.apersonwhoinitiallystartedafirmandcurrentlyhasmanagementcontroloverthecashflowsofthefirmduetohis/hercurrentownershipofcompanystock.D.acreditortowhomthefirmcurrentlyowesmoneyandwhoconsequentlyhasaclaimonthecashflowsofthefirm.E.anypersonorentityotherthanastockholderorcreditorwhopotentiallyhasaclaimonthecashflowsofthefirm.TheSarbanesOxleyActof2002isintendedto:A.protectfinancialmanagersfrominvestors.B.nothaveanyeffectonforeigncompanies.C.reducecorporaterevenues.D.protectinvestorsfromcorporateabuses.E.decreaseauditcostsfor.firms.Thetreasurerandthecontrollerofacorporationgenerallyreporttothe:A.boardofdirectors.B.chairmanoftheboard.C.chiefexecutiveofficer.D.president.E.chieffinancialofficer.WhichoneofthefollowingstatementsiscorrectconcerningtheorganizationalstructureofacorporationA.Thevicepresidentoffinancereportstothechairmanoftheboard.B.Thechiefexecutiveofficerreportstotheboardofdirectors.C.Thecontrollerreportstothepresident.D.Thetreasurerreportstothechiefexecutiveofficer.E.Thechiefoperationsofficerreportstothevicepresidentofproduction.20.WhichoneofthefollowingisacapitalbudgetingdecisionA.determininghowmuchdebtshouldbeborrowedfromaparticularlenderB.decidingwhetherornottoopenanewstoreC.decidingwhentorepayalong-termdebtD.determininghowmuchinventorytokeeponhandE.determininghowmuchmoneyshouldbekeptinthecheckingaccountTheSarbanesOxleyActwasenactedin:A.1952.B.1967.C.1998.D.2002.E.2006.SincetheimplementationofSarbanes-Oxley,thecostofgoingpublicintheUnitedStateshas:increased.decreased.remainedaboutthesame.beenerratic,butovertimehasdecreased.ItisimpossibletotellsinceSarbanes-Oxleycompliancedoesnotinvolvedirectcosttothefirm.WorkingcapitalmanagementincludesdecisionsconcerningwhichofthefollowingI.accountspayableII.long-termdebtA.IandIIonlyB.IandIIIonlyC.IIandIVonlyD.I,II,andIIIonlyE.I,III,andIVonlyWorkingcapitalmanagement:A.ensuresthatsufficientequipmentisavailabletoproducetheamountofproductdesiredonadailybasis.B.ensuresthatlong-termdebtisacquiredatthelowestpossiblecost.C.ensuresthatdividendsarepaidtoallstockholdersonanannualbasis.D.balancestheamountofcompanydebttotheamountofavailableequity.E.isconcernedwiththeupperportionofthebalancesheet.WhichoneofthefollowingstatementsconcerningasoleproprietorshipiscorrectA.Asoleproprietorshipistheleastcommonformofbusinessownership.B.Theprofitsofasoleproprietorshiparetaxedtwice.C.Theownersofasoleproprietorshipshareprofitsasestablishedbythepartnershipagreement.D.Theownerofasoleproprietorshipmaybeforcedtosellhis/herpersonalassetstopaycompanydebts.E.Asoleproprietorshipisoftenstructuredasalimitedliabilitycompany.WhichoneofthefollowingstatementsconcerningasoleproprietorshipiscorrectA.Thelifeofthefirmislimitedtothelifespanoftheowner.B.Theownercangenerallyraiselargesumsofcapitalquiteeasily.C.Theownershipofthefirmiseasytotransfertoanotherindividual.D.Thecompanymustpayseparatetaxesfromthosepaidbytheowner.E.Thelegalcoststoformasoleproprietorshiparequitesubstantial.WhichoneofthefollowingbestdescribestheprimaryadvantageofbeingalimitedpartnerratherthanageneralpartnerA.entitlementtoalargerportionofthepartnership'sincomeB.abilitytomanagetheday-to-dayaffairsofthebusinessC.nopotentialfinanciallossD.greatermanagementresponsibilityE.liabilityforfirmdebtslimitedtothecapitalinvested28.Ageneralpartner:A.haslesslegalliabilitythanalimitedpartner.B.hasmoremanagementresponsibilitythanalimitedpartner.C.facesdoubletaxationwhereasalimitedpartnerdoesnot.D.cannotlosemorethantheamountofhis/herequityinvestment.E.isthetermappliedonlytocorporationswhichinvestinpartnerships.29.Apartnership:A.istaxedthesameasacorporation.B.agreementdefineswhetherthebusinessincomewillbetaxedlikeapartnershiporacorporation.C.terminatesatthedeathofanygeneralpartner.D.haslessofanabilitytoraisecapitalthanaproprietorship.E.allowsforeasytransferofinterestfromonegeneralpartnertoanother.30.Whichofthefollowingaredisadvantagesofapartnership？I.limitedlifeofthefirmII.personalliabilityforfirmdebtgreaterabilitytoraisecapitalthanasoleproprietorshipIV.lackofabilitytotransferpartnershipinterestA.IandIIonlyB.IIIandIVonlyC.IIandIIIonlyD.I,II,andIVonlyE.I,III,andIVonly31.Whichofthefollowingareadvantagesofthecorporateformofbusinessownership？I.limitedliabilityforfirmdebtII.doubletaxationB.IIIandIVonlyC.I,II,andIIIonlyD.II,III,andIVonlyE.I,III,andIVonlyWhichoneofthefollowingstatementsiscorrectconcerningcorporationsA.Thelargestfirmsareusuallycorporations.B.Themajorityoffirmsarecorporations.C.Thestockholdersareusuallythemanagersofacorporation.D.Theabilityofacorporationtoraisecapitalisquitelimited.E.Theincomeofacorporationistaxedaspersonalincomeofthestockholders.33.WhichoneofthefollowingstatementsiscorrectA.Bothpartnershipsandcorporationsincurdoubletaxation.B.Bothsoleproprietorshipsandpartnershipsaretaxedinasimilarfashion.C.Partnershipsarethemostcomplicatedtypeofbusinesstoform.D.Bothpartnershipsandcorporationshavelimitedliabilityforgeneralpartnersandshareholders.E.Alltypesofbusinessformationshavelimitedlives.34.Thearticlesofincorporation:A.canbeusedtoremovecompanymanagement.B.areamendedannuallybythecompanystockholders.C.setforththenumberofsharesofstockthatcanbeissued.D.setforththerulesbywhichthecorporationregulatesitsexistence.E.cansetforththeconditionsunderwhichthefirmcanavoiddoubletaxation.35.Thebylaws:A.establishthenameofthecorporation.B.areruleswhichapplyonlytolimitedliabilitycompanies.C.setforththepurposeofthefirm.D.mandatetheprocedureforelectingcorporatedirectors.E.setforththeprocedurebywhichthestockholderselecttheseniormanagersofthefirm.Theownersofalimitedliabilitycompanyprefer:A.beingtaxedlikeacorporation.B.havingliabilityexposuresimilartothatofasoleproprietor.C.beingtaxedpersonallyonallbusinessincome.D.havingliabilityexposuresimilartothatofageneralpartner.E.beingtaxedlikeacorporationwithliabilitylikeapartnership.WhichoneofthefollowingbusinesstypesisbestsuitedtoraisinglargeamountsofcapitalcorporationgeneralpartnershiplimitedpartnershipWhichtypeofbusinessorganizationhasalltherespectiverightsandprivilegesofalegalpersoncorporationlimitedliabilitycompanyFinancialmanagersshouldstrivetomaximizethecurrentvaluepershareoftheexistingstockbecause:A.doingsoguaranteesthecompanywillgrowinsizeatthemaximumpossiblerate.B.doingsoincreasesthesalariesofalltheemployees.C.thecurrentstockholdersaretheownersofthecorporation.D.doingsomeansthefirmisgrowinginsizefasterthanitscompetitors.E.themanagersoftenreceivesharesofstockaspartoftheircompensation.Thedecisionsmadebyfinancialmanagersshouldallbeoneswhichincreasethe:A.sizeofthefirm.B.growthrateofthefirm.C.marketabilityofthemanagers.D.marketvalueoftheexistingowners'equity.E.financialdistressofthefirm.WhichoneofthefollowingactionsbyafinancialmanagercreatesanagencyproblemA.refusingtoborrowmoneywhendoingsowillcreatelossesforthefirmB.refusingtolowersellingpricesifdoingsowillreducethenetprofitsC.agreeingtoexpandthecompanyattheexpenseofstockholders'valueD.agreeingtopaybonusesbasedonthebookvalueofthecompanystockE.increasingcurrentcostsinordertoincreasethemarketvalueofthestockholders'equityWhichofthefollowinghelpconvincemanagerstoworkinthebestinterestofthestockholders？I.compensationbasedonthevalueofthestockII.stockoptionplansIII.threatofaproxyfightIV.threatofconversiontoapartnershipA.IandIIonlyB.IIandIIIonlyC.I,IIandIIIonlyD.IandIIIonlyE.I,II,III,andIVWhichformofbusinessstructurefacesthegreatestagencyproblemsA.soleproprietorshipE.limitedliabilitycompanyAproxyfightoccurswhen:A.theboardsolicitsrenewalofcurrentmembers.B.agroupsolicitsproxiestoreplacetheboardofdirectors.C.acompetitorofferstoselltheirownershipinthefirm.D.thefirmfilesforbankruptcy.E.thefirmisdeclaredinsolvent.WhichoneofthefollowingpartiesisconsideredastakeholderofafirmA.employeeWhichofthefollowingarekeyrequirementsoftheSarbanes-OxleyAct？I.Officersofthecorporationmustreviewandsignannualreports.Officersofthecorporationmustnowownmorethan5%ofthefirm'sstock.III.AnnualreportsmustlistdeficienciesininternalcontrolsB.IIonlyInsidertradingis:A.legal.B.illegal.C.impossibletohaveinourefficientmarket.D.discouraged,butlegal.E.listonlythesecuritiesofthelargestfirms.Soleproprietorshipsarepredominantlystartedbecause:A.theyareeasilyandcheaplysetup.B.theproprietorshiplifeislimitedtothebusinessowner'slife.C.allbusinesstaxesarepaidasindividualtax.D.Alloftheabove.E.Noneoftheabove.49.Managersareencouragedtoactinshareholders'interestsby:A.shareholderelectionofaboardofdirectorswhoselectmanagement.B.thethreatofatakeoverbyanotherfirm.C.compensationcontractsthattiecompensationtocorporatesuccess.D.BothAandB.E.Alloftheabove.TheSecuritiesExchangeActof1934focuseson:A.allstocktransactions.B.salesofexistingsecurities.C.issuanceofnewsecurities.D.insidertrading.E.FederalDepositInsuranceCorporation(FDIC)insurance.ThebasicregulatoryframeworkintheUnitedStateswasprovidedby:A.theSecuritiesActof1933.B.theSecuritiesExchangeActof1934.C.themonetarysystem.D.AandB.E.Alloftheabove.TheSecuritiesActof1933focuseson:A.allstocktransactions.B.salesofexistingsecurities.C.issuanceofnewsecurities.D.insidertrading.E.FederalDepositInsuranceCorporation(FDIC)insurance.Inalimitedpartnership:A.eachlimitedpartner'sliabilityislimitedtohisnetworth.B.eachlimitedpartner'sliabilityislimitedtotheamountheputintothepartnership.C.eachlimitedpartner'sliabilityislimitedtohisannualsalary.D.thereisnolimitationonliability;onlyalimitationonwhatthepartnercanearn.E.Noneoftheabove.54.Accountingprofitsandcashflowsare:A.generallythesamesincetheyreflectcurrentlawsandaccountingstandards.B.generallythesamesinceaccountingprofitsreflectwhenthecashflowsarereceived.C.generallynotthesamesinceGAAPallowsforrevenuerecognitionseparatefromthereceiptofcashflows.D.generallynotthesamebecausecashinflowsoccurbeforerevenuerecognition.E.Bothcandd.EssayQuestions55.Listandbrieflydescribethethreebasicquestionsaddressedbyafinancialmanager.WhatadvantagesdoesthecorporateformoforganizationhaveoversoleproprietorshipsorpartnershipsIfthecorporateformofbusinessorganizationhassomanyadvantagesoverthesoleproprietorship,whyisitsocommonforsmallbusinessestoinitiallybeformedassoleproprietorships58.WhatshouldbethegoalofthefinancialmanagerofacorporationWhy59.Doyouthinkagencyproblemsariseinsoleproprietorshipsand/orpartnershipsAssumeforamomentthatthestockholdersinacorporationhaveunlimitedliabilityforcorporatedebts.Ifso,whatimpactwouldthishaveonthefunctioningofprimaryandsecondarymarketsforcommonstockSupposeyouown100sharesofIBMstockwhichyouintendtoselltoday.Sinceyouwillsellitinthesecondarymarket,IBMwillreceivenodirectcashflowsasaconsequenceofyoursale.Why,then,shouldIBM'smanagementcareaboutthepriceyougetforyoursharesOnethinglenderssometimesrequirewhenloaningmoneytoasmallcorporationisanassignmentofthecommonstockascollateralontheloan.Then,ifthebusinessfailstorepayitsloan,theownershipofthestockcertificatescanbetransferreddirectlytothelender.WhymightalenderwantsuchanassignmentWhatadvantageofthecorporateformoforganizationcomesintoplayhereWhymightacorporationwishtolistitssharesonanationalexchangesuchastheNYSEasopposedtoaregionalexchangeorNASDAQChapter01IntroductiontoCorporateFinanceAnswerKeyMultipleChoiceQuestionsThepersongenerallydirectlyresponsibleforoverseeingthetaxmanagement,costaccounting,financialaccounting,andinformationsystemfunctionsisthe:treasurer.director.controller.chairmanoftheboard.chiefexecutiveofficer.Difficultylevel:EasyTopic:CONTROLLERType:DEFINITIONSThepersongenerallydirectlyresponsibleforoverseeingthecashandcreditfunctions,financialplanning,andcapitalexpendituresisthe:treasurer.director.controller.chairmanoftheboard.E.chiefoperationsofficer.Difficultylevel:EasyTopic:TREASURERType:DEFINITIONSTheprocessofplanningandmanagingafirm'slong-terminvestmentsiscalled:A.workingcapitalmanagement.B.financialdepreciation.C.agencycostanalysis.D.capitalbudgeting.E.capitalstructure.Difficultylevel:EasyTopic:CAPITALBUDGETINGType:DEFINITIONSThemixtureofdebtandequityusedbyafirmtofinanceitsoperationsiscalled:A.workingcapitalmanagement.B.financialdepreciation.C.costanalysis.D.capitalbudgeting.E.capitalstructure.Difficultylevel:EasyTopic:CAPITALSTRUCTUREType:DEFINITIONSThemanagementofafirm'sshort-termassetsandliabilitiesiscalled:A.workingcapitalmanagement.B.debtmanagement.C.equitymanagement.D.capitalbudgeting.E.capitalstructure.Difficultylevel:EasyTopic:WORKINGCAPITALMANAGEMENTType:DEFINITIONSAbusinessownedbyasingleindividualiscalleda:A.corporation.B.soleproprietorship.C.generalpartnership.D.limitedpartnership.E.limitedliabilitycompany.Difficultylevel:EasyTopic:SOLEPROPRIETORSHIPType:DEFINITIONSAbusinessformedbytwoormoreindividualswhoeachhaveunlimitedliabilityforbusinessdebtsiscalleda:corporation.soleproprietorship.generalpartnership.limitedpartnership.limitedliabilitycompany.Difficultylevel:EasyTopic:GENERALPARTNERSHIPType:DEFINITIONSThedivisionofprofitsandlossesamongthemembersofapartnershipisformalizedinthe:A.indemnityclause.B.indenturecontract.C.statementofpurpose.D.partnershipagreement.E.groupcharter.Difficultylevel:EasyTopic:PARTNERSHIPAGREEMENTType:DEFINITIONSAbusinesscreatedasadistinctlegalentitycomposedofoneormoreindividualsorentitiesiscalleda:corporation.soleproprietorship.generalpartnership.limitedpartnership.unlimitedliabilitycompany.Difficultylevel:EasyTopic:CORPORATIONType:DEFINITIONSThecorporatedocumentthatsetsforththebusinesspurposeofafirmisthe:A.indenturecontract.B.statetaxagreement.C.corporatebylaws.D.debtcharter.E.articlesofincorporation.Difficultylevel:EasyTopic:ARTICLESOFINCORPORATIONType:DEFINITIONSTherulesbywhichcorporationsgovernthemselvesarecalled:A.indentureprovisions.B.indemnityprovisions.C.charteragreements.D.bylaws.E.articlesofincorporation.Difficultylevel:EasyTopic:BYLAWSType:DEFINITIONSAbusinessentityoperatedandtaxedlikeapartnership,butwithlimitedliabilityfortheowners,iscalleda:A.limitedliabilitycompany.B.generalpartnership.C.limitedproprietorship.D.soleproprietorship.E.corporation.Difficultylevel:EasyTopic:LIMITEDLIABILITYCOMPANYType:DEFINITIONS13.Theprimarygoaloffinancialmanagementisto:A.maximizecurrentdividendspershareoftheexistingstock.B.maximizethecurrentvaluepershareoftheexistingstock.C.avoidfinancialdistress.D.minimizeoperationalcostsandmaximizefirmefficiency.E.maintainsteadygrowthinbothsalesandnetearnings.Difficultylevel:EasyTopic:FINANCIALMANAGEMENTGOALType:DEFINITIONSAconflictofinterestbetweenthestockholdersandmanagementofafirmiscalled:A.stockholders'liability.B.corporatebreakdown.C.theagencyproblem.D.corporateactivism.E.legalliability.Difficultylevel:EasyTopic:AGENCYPROBLEMType:DEFINITIONS15.Agencycostsreferto:A.thetotaldividendspaidtostockholdersoverthelifetimeofafirm.B.thecoststhatresultfromdefaultandbankruptcyofafirm.C.corporateincomesubjecttodoubletaxation.D.thecostsofanyconflictsofinterestbetweenstockholdersandmanagement.E.thetotalinterestpaidtocreditorsoverthelifetimeofthefirm.Difficultylevel:EasyTopic:AGENCYCOSTSType:DEFINITIONS16.Astakeholderis:A.anypersonorentitythatownssharesofstockofacorporation.B.anypersonorentitythathasvotingrightsbasedonstockownershipofacorporation.C.apersonwhoinitiallystartedafirmandcurrentlyhasmanagementcontroloverthecashflowsofthefirmduetohis/hercurrentownershipofcompanystock.D.acreditortowhomthefirmcurrentlyowesmoneyandwhoconsequentlyhasaclaimonthecashflowsofthefirm.E.anypersonorentityotherthanastockholderorcreditorwhopotentiallyhasaclaimonthecashflowsofthefirm.Difficultylevel:EasyTopic:STAKEHOLDERSType:DEFINITIONSTheSarbanesOxleyActof2002isintendedto:A.protectfinancialmanagersfrominvestors.B.nothaveanyeffectonforeigncompanies.C.reducecorporaterevenues.D.protectinvestorsfromcorporateabuses.E.decreaseauditcostsfor.firms.Difficultylevel:EasyTopic:SARBANESOXLEYType:CONCEPTSThetreasurerandthecontrollerofacorporationgenerallyreporttothe:A.boardofdirectors.B.chairmanoftheboard.C.chiefexecutiveofficer.D.president.E.chieffinancialofficer.Difficultylevel:EasyTopic:ORGANIZATIONALSTRUCTUREType:CONCEPTSWhichoneofthefollowingstatementsiscorrectconcerningtheorganizationalstructureofacorporationA.Thevicepresidentoffinancereportstothechairmanoftheboard.B.Thechiefexecutiveofficerreportstotheboardofdirectors.C.Thecontrollerreportstothepresident.D.Thetreasurerreportstothechiefexecutiveofficer.E.Thechiefoperationsofficerreportstothevicepresidentofproduction.Difficultylevel:MediumTopic:ORGANIZATIONALSTRUCTUREType:CONCEPTS20.WhichoneofthefollowingisacapitalbudgetingdecisionA.determininghowmuchdebtshouldbeborrowedfromaparticularlenderB.decidingwhetherornottoopenanewstoreC.decidingwhentorepayalong-termdebtD.determininghowmuchinventorytokeeponhandE.determininghowmuchmoneyshouldbekeptinthecheckingaccountDifficultylevel:MediumTopic:CAPITALBUDGETINGType:CONCEPTSTheSarbanesOxleyActwasenactedin:A.1952.B.1967.C.1998.D.2002.E.2006.Difficultylevel:MediumTopic:SARBANESOXLEYType:CONCEPTSSincetheimplementationofSarbanes-Oxley,thecostofgoingpublicintheUnitedStateshas:increased.decreased.remainedaboutthesame.beenerratic,butovertimehasdecreased.ItisimpossibletotellsinceSarbanes-Oxleycompliancedoesnotinvolvedirectcosttothefirm.Difficultylevel:MediumTopic:SARBANES-OXLEYType:CONCEPTSWorkingcapitalmanagementincludesdecisionsconcerningwhichofthefollowingI.accountspayableII.long-termdebtA.IandIIonlyB.IandIIIonlyC.IIandIVonlyD.I,II,andIIIonlyE.I,III,andIVonlyDifficultylevel:MediumTopic:WORKINGCAPITALMANAGEMENTType:CONCEPTS24.Workingcapitalmanagement:A.ensuresthatsufficientequipmentisavailabletoproducethea