A Corporation Is Owned by Its

question 71

Multiple Choice

A corporation is owned by its

• A)board of directors.
• B)stockholders.
• C)employees.
• D)CEO.

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Definitions:

Notes Receivable

Financial assets representing the right to receive payments from a debtor for a specified amount by a certain date.

Receivables Turnover

A financial ratio indicating how quickly a company collects outstanding accounts receivable.

Current Ratio

A liquidity ratio that measures a company’s ability to cover its short-term liabilities with its short-term assets.

Inventory Turnover

A ratio that measures how many times inventory is sold and replaced over a certain period, used to evaluate the efficiency of a company's inventory management.