Indicate Whether Each of the Following Statements Is True or False

question 62

Short Answer

Indicate whether each of the following statements is true or false.
_____ a)Other things being equal,an operating cycle of 49 days is more desirable than an operating cycle of 120 days.
_____ b)The operating cycle is longer for a winery than a fast-food restaurant.
_____ c)The length of an operating cycle is not relevant to the profitability of a business.
_____ d)The length of an operating cycle equals the average days to collect accounts receivable.
_____ e)The length of an operating cycle is computed by adding the sum of the average days in inventory and the average number of days to collect accounts receivable.

Determine the factors that do not contribute to or negatively impact labor productivity growth.

Understand the principles of loan amortization and the calculation of periodic payments and interest.

Calculate and interpret the effective annual rate (EAR) of a loan with different compounding periods.

Distinguish between simple and compound interest and understand the impact of compounding frequency on the total interest paid.

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Definitions:

Illegal

Activities or actions that are forbidden by law.

Transnational Corporation

A large company that operates in multiple countries, managing production or delivering services in more than one country.

Motorcycle Manufacturer

A company that designs, produces, and sells motorcycles.

Foreign Subsidiary

A company that is owned or controlled by another company, known as the parent company, and is located in a country different from where the parent company is situated.