Pepsi Had an Accounts Receivable Turnover Ratio of 9

question 54

Multiple Choice

Pepsi had an accounts receivable turnover ratio of 9.9 this year and 11.0 last year. Coke had a turnover ratio of 9.3 this year and 9.3 last year. This implies

• A) Coke had a better receivables turnover for both years.
• B) Pepsi had a better receivables turnover for both years.
• C) Coke has credit policies that need to be tightened.
• D) Coke collected receivables more quickly than Pepsi in both years.

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Definitions:

Mechanistic

An organizational design characterized by rigid and tightly controlled structures, often found in highly formalized and hierarchical organizations.

Formal

Pertaining to or following established traditions, rules, or conventions, often in an official or professional context.

Network Organizations

are structured around networks rather than traditional hierarchies, emphasizing informal communication, flexibility, and decentralized decision-making.

Virtual Organizations

A business model where an organization operates and coordinates its activities primarily through digital and telecommunication networks rather than in a physical space.