In 1979 International Business Machines Corp

question 93

Essay

In 1979 International Business Machines Corp.(IBM)was one of the world's largest companies,and it dominated the market for huge mainframe computers.Back then,IBM's inventory turnover ratio was about 3.3.Through the years,IBM switched from mainframe to personal computers,and today the company earns most of its revenues from a variety of services rather than from selling hardware.By 2017,IBM's inventory turnover ratio had risen to 23.9.What do you think might account for the tremendous increase in IBM's inventory turnover between 1979 and 2017?

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Definitions:

Face Value

The nominal value printed on a bond, note, or other financial instrument, representing its value at maturity.

Promissory Note

A financial instrument containing a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Dishonored

A term used when a financial instrument, such as a check or bill of exchange, is not paid upon presentation or when agreed terms are not met.

Due Date

The due date is the specified date by which a task, obligation, or payment is required to be completed or submitted.