"Production Is Coordinated and Finance Is Centralized" Best Describes the Global

question 160

True/False

"Production is coordinated and finance is centralized" best describes the global business strategy and structure of a franchiser.

---

Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health.

Acid-test Ratio

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

Debt-to-equity Ratio

This proportion demonstrates the relative use of debt and shareholders' equity in the capital funding of a company's assets.

Receivable Turnover

A financial metric indicating how efficiently a company collects cash from credit sales by measuring the number of times average accounts receivable are collected over a period.