Which of the Following Is a Firm's Operating Cycle

question 32

Multiple Choice

Which of the following is a firm's operating cycle?

• A) the average length of time between when a firm originally purchases its inventory and when it receives the cash back from selling its product
• B) the average length of time between when a firm pays cash to purchase its initial inventory and when it receives cash from the sale of the product produced from that inventory
• C) the average length of time between when a firm originally purchases its inventory and when it sells the product produced from that inventory
• D) the average length of time between when a firm originally purchases its inventory and when it pays cash for that inventory

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Definitions:

Profits

The financial gain realized when the revenues generated from business activities exceed the expenses, costs, and taxes associated with sustaining the operation.

Market Share

The portion of a market controlled by a particular company or product, typically expressed as a percentage of total sales in that market.

Employee Welfare

The range of services and benefits provided by an employer to promote the well-being of employees.

Social Responsibility

The ethical framework suggesting that individuals and organizations have an obligation to act for the benefit of society at large.