1. Please discuss "Dillon's Rule" and how it affects the ability of local jurisdictions to be fiscally sound.

2. Please search the internet and find a news story or a case in which a contract was voided based on one of the factors identified in this chapter. Capacity, Legality, and Enforceability.

3. "Positioning" might cause a marketing manager to _____________.

a. introduce a new product for a segment with unsatisfied needs.

b. change a product's promotion to make its image fit more closely with the needs and attitudes of the target market

c. shift attention to another market segment where competition is weaker

d. physically change his or her product to compete more effectively with a competitor aiming at the same target market.

e. Any of these could be true.

4. Which of these statements about cycle inventory is most accurate?

a. Changing the lead time for an item has no direct effect on cycle inventory

b. cycle inventory should be larger when demand is uncertain

c. cycle inventory should be smaller when demand is uncertain

d. shorter average times between orders means average cycle inventory should be higher

e. if there is no pipeline inventory, then cycle inventory must be at its maximum level