The Basic Strategies That Should Be Employed by a Business

question 103

Multiple Choice

The basic strategies that should be employed by a business firm in managing cash includes ________.

• A) paying accounts payable as early as possible
• B) turning over inventory as quickly as possible, avoiding stockouts
• C) operating in a fashion that requires maximum cash
• D) extending the credit period allowed to customers

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Definitions:

Operating Profit

The profit earned from a firm's normal core business operations.

Assistant's Salary

refers to the compensation provided to an assistant, which can vary depending on the field of work, job responsibilities, and experience level.

Accounting Profit

The financial gain calculated by subtracting total expenses from total revenues, according to standard accounting practices.

Own Capital

Resources or funds that an individual or company owns outright without any debt obligations.