As the Business Grows or Is Forced by Competitive Pressures

question 50

Multiple Choice

As the business grows or is forced by competitive pressures to alter its product,market,or technology,______ the company mission may be necessary.

• A) redefining
• B) abandoning
• C) writing
• D) discarding

---

Definitions:

Accounts Payable Period

The average duration it takes for a company to pay off its suppliers after receiving goods or services.

Accounts Receivable Period

The mean duration that a company requires to receive payments from credit sales, reflecting the effectiveness of its policies on credit and collections.

Operating Cycle

The period of time between the acquisition of inventory by a company and the receipt of cash from accounts receivable from the sale of that inventory.

Inventory Period

The time it takes for a company to turn its inventory into sales.