G Co and a Co Are Both in the Biotechnology

question 44

Multiple Choice

G Co and A Co are both in the biotechnology industry. In 20X3, G Co reported a trade payables turnover of 7.71 and A Co reported a ratio of 3.06. Which of the following is an incorrect reason for the difference in ratios?

• A) A Co has a higher average trade payables in comparison to G co.
• B) A Co has a lower average trade payables in comparison to G co.
• C) A Co is taking longer to pay vendors.
• D) G Co has a better payment record in terms of timely payment to vendors.

---

Definitions:

Edgeworth Box

A diagram used in economics to show the distribution of resources and the allocation of goods in a two-person, two-good economy.

Contract Curve

In economics, the curve that represents the set of Pareto efficient allocations in an Edgeworth Box diagram.

Utility Function

A symbolic depiction illustrating the ranking of preferences a consumer holds across various goods or outcomes.

Edgeworth Box

A diagram used in economics to show the distribution of resources and the potential gains from trade between two individuals in a pure exchange economy.