The Success of CFM International (The Strategic Partnership Between GE

question 98

Multiple Choice

The success of CFM International (the strategic partnership between GE and Snecma) can be attributed to which of the following?

• A)compatibility of the partners
• B)capability of the partners
• C)commitment of the partners
• D)personal chemistry between executives
• E)all of the above

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Definitions:

Receivables Turnover

A measure of a company's efficiency in collecting its sales on credit, calculated by dividing sales by average accounts receivable.

Payables Turnover

A financial ratio that measures how quickly a company pays its suppliers by comparing net credit purchases with the average accounts payable over a period.

Cash Cycle

The period it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, often used to assess the efficiency of inventory management.