The __________Of a Firm Is the Amount of Time That

question 84

Multiple Choice

The __________of a firm is the amount of time that elapses from the point when the firm inputs material and labor into the production process to the point when cash is collected from the sale of the finished product that contains these production inputs.

• A) average age of inventory
• B) average collection period
• C) operating cycle
• D) cash conversion cycle

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Definitions:

Automatic Novation Clause

A contractual clause wherein all parties agree to automatically substitute a new contract or contractual obligation for an old one.

Promoter

A person who organizes and operates a business venture and assumes much of the associated risk.

Contract

A legally upheld agreement involving two or more entities that carries legal obligations.

Preincorporation Contracts

Agreements entered into on behalf of a corporation not yet formally established, raising questions about liability and authority.