Concerning the Relative Merits of Place Theory and Frequency Theory

question 61

Multiple Choice

Concerning the relative merits of place theory and frequency theory, the commonly accepted theory is

• A) a combination of place and frequency theories.
• B) frequency theory.
• C) neither theory.
• D) place theory.

---

Definitions:

Cash Coverage Ratio

A financial metric that measures a company's ability to cover its interest obligations with its operating cash flow.

Days' Sales

A financial ratio that measures how effectively a company uses its inventory, often expressed as the average number of days that a company takes to sell its inventory.

Receivables

Money owed to a business by its clients or customers for goods or services provided on credit.

Inventory

The goods and materials a business holds for the purpose of resale, part of the company's current assets.