Railroads May Have Let Other Forms of Transportation Take Business

question 122

Multiple Choice

Railroads may have let other forms of transportation take business away from them because their definition included only the railroad business, rather than the broader definition of:

• A)entertainment.
• B)aerospace.
• C)retailing.
• D)transportation.

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Definitions:

Cash Cycle

The period between the outlay of cash for the purchase of raw materials and the collection of cash from the sale of products, indicating the efficiency of a company's cash management.

Operating Cycle

The duration between the acquisition of inventory by a company and the collection of payment for the sales of that inventory.

Bank Financing

The process of obtaining capital through the borrowing of funds from a bank.

Collection Period

A metric that measures the length of time it takes for a business to convert its accounts receivable into cash.