A Scientist Discovers a Chemical Compound in Certain Rocks That

question 68

Multiple Choice

A scientist discovers a chemical compound in certain rocks that she calls "stonia." She cannot market extracts that contain stonia as a dietary supplement,because it

• A)has to receive a U.S.patent before the FDA will approve its use.
• B)does not contain dietary ingredients.
• C)must first undergo scientific testing to determine its effectiveness.
• D)contains more than one kind of natural material.

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Definitions:

Cash Cycle

The period between the outlay of cash for the purchase of inventory and the receipt of cash from accounts receivable, reflecting how quickly a company can convert its products into cash through sales.

Restrictive Financial Policies

Policies put in place to limit certain actions by the firm, often to maintain financial stability or to comply with regulatory requirements.

Current Asset Management

The practice of overseeing and optimizing the handling of a company's short-term assets, such as cash, inventory, and receivables.

Credit Manager

A professional responsible for overseeing a company's credit policies and procedures, managing credit risk, and ensuring customers pay their bills on time.