Zervos Inc

question 32

Multiple Choice

Zervos Inc. had the following data for 2008 (in millions) . The new CFO believes (1) that an improved inventory management system could lower the average inventory by $4,000, (2) that improvements in the credit department could reduce receivables by $2,000, and (3) that the purchasing department could negotiate better credit terms and thereby increase accounts payable by $2,000. Furthermore, she thinks that these changes would not affect either sales or the costs of goods sold. If these changes were made, by how many days would the cash conversion cycle be lowered?

• A) 34.0
• B) 37.4
• C) 41.2
• D) 45.3
• E) 49.8

Analyze the legal aspects of gratuitous acts and their enforceability without consideration.

Evaluate the legal responsibilities arising from professional services, including those provided voluntarily.

Analyze legal issues related to tender processes and the obligations of both offering and responding parties.

Understand the legal protections against unconscionable transactions and inadequate consideration.

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Definitions:

Inelastic Demand

A situation in which the demand for a product or service is relatively unaffected by changes in price.

Car Repair Shop

An establishment where automobiles are repaired by auto mechanics, offering services from routine maintenance to more extensive repairs.

Intangibility

A characteristic of services that makes them unable to be seen, touched, or quantified before they are purchased and used.

Service Inconsistency

The variation in the quality or level of service provided to customers over different instances of service delivery.