Entrepreneurs Directly Do All of the Following Except

question 442

Multiple Choice

Entrepreneurs directly do all of the following except

• A) create new ideas about what and how to produce.
• B) make business decisions.
• C) face risks that arise from making business decisions.
• D) decide for whom goods and services are produced.

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Definitions:

Accounts Receivable Period

Also known as the average collection period, it refers to the average number of days it takes a company to collect payments from its credit sales.

Collecting Receivables

Collecting receivables involves the process or steps taken by a business to ensure that payments are received from customers for goods or services provided on credit.

Cash Cycle

The period of time between a company's purchase of inventory and the receipt of cash from accounts receivable.

Operating Cycle

The duration of time from the purchase of inventory to the collection of cash from sales, reflecting the efficiency of a company's operations.