Delicious Donuts Store Has Been Making and Distributing Donuts for the Past

question 27

Multiple Choice

Delicious Donuts Store has been making and distributing donuts for the past 4 years from the same location.It also maintains a good payment record.However, due to some bad operational decisions, it is now facing cash crunch.Nevertheless, the suppliers are ready to supply material for a credit period of 120 days.Which of the following terms is the most probable reason behind the trust that suppliers have on Delicious Donuts Store?

• A)Efficiency
• B)Transparency
• C)Elasticity
• D)Legitimacy

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Definitions:

Acquiring Firm

A company that purchases another company in a merger or acquisition to expand its operations or enter new markets.

Bankruptcy Judge

A judicial officer who presides over court proceedings in bankruptcy cases, making decisions on matters within the bankruptcy law.

Disbursements

Payments made by a business, including operating expenses, dividend payments, and investments in assets.

Trustee

With respect to bonds, an organization that ensures compliance with the conditions set forth in the indenture. With respect to bankruptcy, a person who administers the bankrupt organization to ensure funds are properly handled.