Which of the Following Statements Is CORRECT

question 15

Multiple Choice

Which of the following statements is CORRECT?

• A) A decline in a firm's inventory turnover ratio suggests that it is improving both its inventory management and its liquidity position, i.e., that it is becoming more liquid.
• B) In general, it's better to have a low inventory turnover ratio than a high one, as a low one indicates that the firm has an adequate stock of inventory relative to sales and thus will not lose sales as a result of running out of stock.
• C) If a firm's fixed assets turnover ratio is significantly lower than its industry average, this could indicate that it uses its fixed assets very efficiently or is operating at over capacity and should probably add fixed assets.
• D) The more conservative a firm's management is, the higher its debt ratio is likely to be.
• E) The days sales outstanding ratio tells us how long it takes, on average, to collect after a sale is made. The DSO can be compared with the firm's credit terms to get an idea of whether customers are paying on time.

Comprehend the defining characteristics and constraints of a project.

Recognize the key organizations and their contributions to project management.

Distinguish between different types of goods, services, and project estimates.

Understand the role of synchronous and asynchronous communication in projects.

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Definitions:

Tropical Deforestation

The clearing away of tropical forests due to logging, agriculture, or other human activities, leading to significant ecological and environmental consequences.

Global Warming

The gradual increase in Earth's average surface temperature, attributed to the greenhouse gas emissions from human activities such as fossil fuel burning and deforestation.

Ecological Services

The benefits that natural ecosystems provide to humans, such as clean water, air purification, pollination of crops, and climate regulation.

Human Exploitation

The unethical or unfair use of the labor and resources of people, often leading to harm or disadvantage.