Rapidly Growing Companies Often Buy Increasing Amounts of Merchandise from Suppliers

question 31

Multiple Choice

Rapidly growing companies often buy increasing amounts of merchandise from suppliers on credit,and then sell the goods to their customers on credit.These companies sometimes have difficulty repaying their suppliers when customers who buy on credit don't pay on time.Firms that experience this difficulty need to do a better job of:

• A)Generating revenue.
• B)Controlling inventory.
• C)Managing cash flows.
• D)Balancing assets with liabilities.

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Definitions:

Igneous Rocks

Rocks formed by the cooling and solidification of magma or lava.

Columnar Joints

Distinctive fracture-bounded columns of rock formed when hot but solid igneous rock contracts as it cools.

Pluton

A body of intrusive igneous rock that crystallized from magma slowly cooling below the surface of the Earth.

Hot Spot

A location on the Earth's surface that has experienced prolonged volcanic activity, thought to be caused by a rising mantle plume.