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Scenario 7.2 Use the Following Scenario to Answer the Questions

question 38

Multiple Choice

Scenario 7.2
Use the following scenario to answer the questions.
Accura Brake Company is a supplier of brake components to the manufacturers of lawn tractors and 4-wheel ATVs. It also sells its products to independent repair centers, dealers, and other wholesalers in the northeast and southern states of the USA. Accura Brake has done research on the demand for lawn tractors and found that most manufacturers are in the states of Kentucky, Tennessee, and Alabama. Research also shows that most of the dealers who sell directly to individual consumers are in the Midwestern states, while dealers who sell to small business landscaping companies tend to be located in the northeastern states. Thus, the board of directors of Accura Brake Company is considering expansion of its distribution to markets in the Midwest.
-Refer to Scenario 7.2. When Accura Brake's sales team calls on tractor manufacturing companies, the meetings typically include the engineers who design the tractors. In this situation, the engineers would most likely be considered to be as a part of the buying center.

Definitions:

Accounts Receivable

The amount due to an enterprise by its clients for delivered goods or services awaiting payment.

ACP

Average Collection Period, a metric indicating the average number of days it takes for a company to receive payments owed by its customers.

Investing Activities

Operations related to buying and selling long-term assets and investments, excluding those considered as cash equivalents.

Financial Analysts

Professionals who evaluate investments, economic trends, and financial statements to help businesses and individuals make informed financial decisions.