Which of the Following Statements Is Correct

question 15

Multiple Choice

Which of the following statements is correct?

• A)If a firm has a very high fixed asset turnover, it means that the firm may be nearing its maximum production capacity.
• B)An extremely low average collection period will maximize net income.
• C)In general, a firm should strive for a high average payment period because it wants to pay for its purchases as quickly as possible.
• D)All of these statements are correct.

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Definitions:

Co-worker

A co-worker is an individual who works with others in the same organization or on the same team, often sharing tasks, responsibilities, and goals within the workplace.

Referent Power

A form of influence that stems from an individual's ability to be admired and identified with, leading others to follow out of respect or admiration.

Legitimate Power

The authority or power that is recognized as rightful or lawful, often derived from a position of authority in an organizational hierarchy.