Identify a True Statement About Environmental Uncertainty

question 28

Multiple Choice

Identify a true statement about environmental uncertainty.

• A) It is most likely to be high when there is technological stability in the industry.
• B) It is most likely to be high when the industry is at an equilibrium state.
• C) It is most likely to be low when environmental complexity is at a low level.
• D) It is most likely to be low when environmental change is extensive.

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Definitions:

Days' Sales Uncollected

A measure of how quickly a company converts its accounts receivable into cash, indicating the average number of days sales remain uncollected.

Financial Information

Data concerning the financial status or operations of an entity, including statements and transactions.

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity position by comparing its most liquid assets, excluding inventories, against its short-term liabilities.

Financial Information

Data related to the financial status of an entity, including balance sheets, profit and loss statements, and cash flow reports.