Tightly Bundled Resources/capabilities May Be a Disadvantage in High Velocity

question 33

True/False

Tightly bundled resources/capabilities may be a disadvantage in high velocity environments.

---

Definitions:

Bad Debts Expense

Bad debts expense represents the amount of receivables a company estimates it will not collect due to customer defaults.

Trade Receivables

Amounts owed to a business by its customers for goods or services delivered on credit.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount, in exchange for immediate cash.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.