Even If Family Members Lack the Capability to Run the Business

question 43

True/False

Even if family members lack the capability to run the business, an entrepreneur should always select a successor from this pool of talent.

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Definitions:

Accounts Receivable Turnover

A financial ratio indicating how many times a company collects its average accounts receivable during a period.

Accounts Receivable

Debt that customers hold towards a business for received goods or services which remain unpaid.

Cash Sales

Transactions in which the buyer pays the seller immediately with cash or other forms of immediate payment.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers.