Tasmina Has Started Her Own Business Insurance Software Firm

question 2

Multiple Choice

Tasmina has started her own business insurance software firm.She cannot afford a market research firm to keep track of what her competitors are doing.With her shoestring budget, Tasmina's best option to research this problem would be:

• A)consulting census data.
• B)visiting competitors' websites.
• C)using competitors' software.
• D)asking the Chamber of Commerce for assistance.
• E)checking SEC filings.

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Definitions:

Inventory Turnover Ratio

A metric indicating how often a company's inventory is sold and replaced over a specific period, useful in evaluating the efficiency of inventory management.

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers.

Current Ratio

A financial metric assessing a firm's capacity to settle debts due within a year by comparing its current assets to its current liabilities.