Which Observation Is True of Vulture Funds

question 93

Multiple Choice

Which observation is true of vulture funds?

• A)Their decisions based on developing and maintaining long-term relationships.
• B)Their sole agenda is to helping the distressed firm to survive.
• C)Their investments are always passive.
• D)They are relationship based, not transaction driven.
• E)In a restructuring, they are looking for a return on capital invested.

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Definitions:

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects cash from its credit sales by calculating the number of times average accounts receivable are collected during a period.

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a period.

Days' Sales Uncollected

A financial metric that measures the average number of days it takes a company to collect payment after a sale has been made.

Days' Sales In Inventory

A financial metric that estimates how many days it will take to sell the entire inventory, indicating the liquidity of inventory.