If the Delivery of Goods or Services Used as Inputs

question 24

Multiple Choice

If the delivery of goods or services used as inputs is uncertain,proactive firms may try to ______.

• A)predict future trends and problems
• B)switch to manufacturing products which have more reliable inputs
• C)exit that line of business altogether
• D)redesign its products so that uncertain inputs can be avoided

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Definitions:

Collections

The process of pursuing payments of debts owed by individuals or businesses, typically regarding accounts receivable.

Disbursements

Financial payments made by a business, including cash expenditures, payments on debts, or distribution of dividends.

Beginning Balance

The amount of money in a given account at the start of a financial period.

Petty Cash Fund

A small amount of cash kept on hand for making immediate, minor expenditures.