Which of the Following Is Not Normally a Characteristic of a Profit

question 35

Multiple Choice

Which of the following is not normally a characteristic of a profit rich, cash poor company?

• A) Low inventory turnover.
• B) High accounts receivable turnover.
• C) High operating income, but low cash flow from operations.
• D) A long operating cycle.

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Definitions:

Marginal Cost

The price of manufacturing an incremental unit of a product.

Perfectly Competitive Market

A market structure characterized by an infinite number of buyers and sellers, identical products, no barriers to entry or exit, and perfect information among all participants.

Short-run Industry

A period in which at least one factor of production is fixed, and firms can only partially adjust their production levels.

Game-day T-shirts

Merchandise specifically designed and sold for sporting events, often featuring team logos or slogans to support the team.