Which of the Following Is an Example of an Operational

question 16

Multiple Choice

Which of the following is an example of an operational activity?

• A)Manage relationships with critical suppliers.
• B)Generate and forward material releases and expedite.
• C)Develop electronic purchasing systems.
• D)Negotiate company-wide supply contracts.
• E)Manage critical commodities.

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Definitions:

Acid-Test Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.

Working Capital

Current assets less current liabilities.

Current Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets.

Marketable Securities

Short-term investments that are easily convertible into cash, typically within one year.