Which of the Following Is Most Unlikely to Qualify as Driving

question 69

Multiple Choice

Which of the following is most unlikely to qualify as driving forces?

• A)changes in the long-term industry growth rate, the entry or exit of major firms, and changes in cost and efficiency
• B)increasing globalization of the industry and product innovation
• C)new Internet technology applications, new government regulations, and significant changes in government policy toward the industry
• D)increasing efforts to collaborate with suppliers via strategic alliances and partnerships, escalating risk levels and normalization of cost and efficiency in the industry
• E)marketing innovations and changes in who buys the industry's product and how they use it

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Definitions:

Accounts Receivable Turnover

This ratio measures how efficiently a company collects revenue from its customers by dividing total sales by the average accounts receivable during a specific period.

Credit Sales

Sales transactions where the payment is deferred to a future date, essentially extending credit to the purchaser.

Credit Period

The amount of time allowed by a seller for a buyer to pay for goods or services received, typically expressed in days.

Operating Cycle

The time period between the acquisition of inventory and when cash is collected from receivables.