11 IF PEOPLE GENERALLY DID NOT ACT ETHICALLY IN SETUP TIME. FIRST, R...
1-11 If people generally did not act ethically in
setup time. First, reduced setup time allows a
business, no one would trust anyone else and
people would be reluctant to enter into business
company to produce in smaller batches, which in
transactions. The result would be less funds raised
turn reduces the level of inventories. Second, re-
duced setup time allows a company to spend more
in capital markets, fewer goods and services avail-
able for sale, lower quality, and higher prices.
time producing goods and less time getting ready
to produce. Third, the ability to rapidly change
© The McGraw-Hill Companies, Inc., 2006.
Solutions Manual, Chapter 1
1