Which Statement Below Is True About a Company's Operating Cycle

question 44

Multiple Choice

Which statement below is true about a company's operating cycle?

• A) It may not exceed one year.
• B) It must be one year.
• C) It may be longer than a year.
• D) It is always longer than a year.

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Definitions:

Competitive Industry

An industry characterized by multiple firms competing with each other by offering similar products or services, aiming to attract consumers and gain market share.

Perfect Competition

A market structure characterized by a complete absence of rivalry among the sellers and perfect information among buyers and sellers.

Short Run

A period in economic analysis where at least one input (such as plant size) is fixed and cannot be changed.

Equilibrium Price

The market price at which the quantity of goods supplied equals the quantity of goods demanded.