The Effect of a Valid Delegation of Duties Is That

question 80

Multiple Choice

The effect of a valid delegation of duties is that it:

• A)discharges the delegator from any further liability.
• B)is an automatic novation.
• C)discharges the obligee from any further liability.
• D)appoints the delegatee to perform the delegator's duty to the obligee.

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Definitions:

Cash Conversion Cycle

A metric that expresses the time (days) it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Accounts Receivable

Money owed to a company by its clients or customers for goods or services that have been delivered but not yet paid for.

Inventory

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

ROEs

Return on Equity, an indicator of financial efficiency determined by dividing a company's net income by its shareholders' equity, reflects how well management utilizes company assets to generate earnings.