Table 3-1 -According to Table 3-1

question 44

Multiple Choice

Table 3-1

-According to Table 3-1:

• A) the potato farmer and cattle farmer both could benefit by the potato farmer specialising in meat, and the cattle farmer specialising in potatoes
• B) the potato farmer and cattle farmer both could benefit by the potato farmer specialising in potatoes, and the cattle farmer specialising in meat
• C) the potato farmer and cattle farmer both could benefit by the potato farmer specialising in neither goods, and the cattle farmer specialising in meat
• D) the potato farmer and cattle farmer cannot benefit by specialisation and trade

---

Definitions:

Average Collection Period (ACP)

The average amount of time it takes for a business to receive payments owed by its customers.

Revenue Forecast

An estimate of the amount of money a company expects to earn over a specific period in the future.

Sustainable Growth Rate

The maximum rate at which a company can grow without needing to increase financial leverage.

Retention Ratio

The proportion of net income that is retained by a company rather than distributed to its shareholders as dividends.