The Operating Cycle of a Company Is the Average Time

question 87

Multiple Choice

The operating cycle of a company is the average time that is required to go from cash to

• A)sales in producing revenues.
• B)cash in producing revenues.
• C)inventory in producing revenues.
• D)accounts receivable in producing revenues.

Understand the impact of attitudes on workplace dynamics and individual behaviors.

Recognize the role of leadership in shaping organizational culture and attitudes.

Identify strategies for changing attitudes and behaviors in professional settings.

Appreciate the importance of diversity in the workplace and its impact on productivity.

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Definitions:

Residual Dividend Policy

A strategy where dividends are based on earnings remaining after all project capital needs are met.

Target Capital Structure

Target capital structure refers to the mix of debt, equity, and other financing sources a company aims to maintain to fund its operations and growth, while optimizing its cost of capital.

Net Income

The sum a company keeps as profit after deducting all operational costs and tax obligations from its gross revenue.

Total Dividend Payment

The sum of all dividends paid to shareholders over a specific period, usually expressed on a per share basis.