BP Has an Average Age of Inventory of 70 Days

question 160

Multiple Choice

BP has an average age of inventory of 70 days, an average collection period of 45 days, and an average payment period of 30 days. Based on this information, BPs cash conversion cycle is ________ days.

• A) 15
• B) 40
• C) 55
• D) 85

Explain perceptual biases in the context of employment interviews and performance evaluations.

Acknowledge the influence of start times and scheduling biases on job performance ratings.

Relate the effects of interview and selection process perceptions on candidate and organizational outcomes.

Understand the concept of diminishing returns and how it impacts marginal cost and benefit curves.

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Definitions:

Original Capital Investment

The initial sum of money invested in a business venture, project, or asset, used to start or acquire the investment.

Salary Allowances

Additional benefits or compensations provided to employees on top of their regular salary, which may include housing, transport, or medical allowances.

Liquidation

The process of closing a business and distributing its assets to claimants, often done when a company is insolvent.

Going Out Of Business

The process of closing a company permanently, often involving selling off assets and paying off creditors.