Handles Corp

question 66

Multiple Choice

Handles Corp.reported credit sales of $6,500,000 and cost of goods sold of $3,400,000 for the year.The Accounts Receivable balances at the beginning and end of the year were $525,000 and $575,000, respectively.The receivables turnover ratio was

• A)6.2 times.
• B)11.3 times.
• C)11.8 times.
• D)5.9 times.

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Definitions:

Price-leadership Model

A market strategy where one leading company sets the price for goods or services, and others in the industry follow suit.

Dominant Firm

A company that has a major share of total sales in a particular market, giving it significant control over market prices and competition.

Oligopoly

A market structure characterized by a small number of firms controlling a large majority of the market share, leading to limited competition.

Dominant Price Leader

A firm that has the biggest market share in an industry and whose price changes are usually followed by other firms in the market.