In the Table Below the Information for Four Companies Is

question 213

Multiple Choice

In the table below the information for four companies is provided. $$\begin{array} { | l | c | c | } \hline \text { Compary } & \begin{array} { c } \text { Accounts Receivable } \\\text { turnover }\end{array} & \text { Average collection period } \\\hline \text { Martin } & 13.9 & 26.3 \\\hline \text { Lewis } & 13.3 & 27.4 \\\hline \text { Danforth } & 10.4 & \mathbf { 3 5 . 1 } \\\hline \text { Gamer } & 14.5 & 25.2 \\\hline \text { Industry Average } & 13.0 & 28.1 \\\hline\end{array}$$ Assuming all four companies are in the same industry, which company appears to have the greatest likelihood of paying its current obligations?

• A) Martin
• B) Lewis
• C) Danforth
• D) Garner

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Definitions:

Standard Practice

The generally accepted methods or procedures that are adopted by a professional community for consistency and quality.

Net Promoter Index

A metric that gauges the willingness of customers to recommend a company's products or services to others, used as a proxy for customer satisfaction and loyalty.

Frederick Reichheld

A renowned business strategist known for his work on customer loyalty, including the development of the Net Promoter Score (NPS) as a measure of customer loyalty and satisfaction.

Consumer Acquisition Costs

The total cost associated with acquiring a new customer, including marketing and sales expenses.