Which of the Following Is Incorrect

question 44

Multiple Choice

Which of the following is incorrect?

• A) The operating cycle always is one year in duration.
• B) The operating cycle sometimes is longer than one year in duration.
• C) The operating cycle sometimes is shorter than one year in duration.
• D) The operating cycle is a concept applicable both to manufacturing and retailing enterprises.

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Definitions:

Business

An enterprise or company participating in market, industry, or specific professional operations.

Business Activity

Engagements or actions undertaken by individuals or companies to produce, sell, or distribute goods or services in pursuit of profits.

Laws

The system of rules that are recognized as regulating the actions of a country's or community's members and enforced by the imposition of penalties.

Forces of Competition

Forces of competition pertain to the external pressures in a marketplace from other firms that affect a company's ability to compete, often described in Porter’s Five Forces model.