Skyrim Corp

question 54

Multiple Choice

Skyrim Corp. lacks the capital and capacity to launch its new helicopter for full national and international distribution. If the test market results look promising, what should be management's next step?

• A) retest the product in additional markets
• B) develop a planned market rollout over time
• C) liquidate its assets to gain capital and capacity
• D) seek the help of a nationally known consultant
• E) develop a prototype

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Definitions:

Terms of Sale

The conditions under which a seller is willing to sell a product or service, including price, payment method, and delivery time.

Prompt Payment Discount

A reduction in the amount due on a bill offered by a seller to encourage early payment by the buyer.

Operating Cycle

The total time it takes for a company to purchase inventory, sell the products, and collect the cash from the sales.

Cash Cycle

The period it takes for a company to convert its investments in inventory and other resources into cash flows from sales.