The Principle of _____ Explains That a Company Makes Money

question 60

Multiple Choice

The principle of _____ explains that a company makes money when it sells inventory and that the faster it sells it,the more money it makes.

• A)inventory matching
• B)inventory analysis
• C)sales turnover
• D)inventory turnover

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Definitions:

Quality

How well a product or service fulfills or goes beyond what customers anticipate.

Agency Costs

The costs associated with resolving conflicts of interest between principals and agents, including monitoring and incentive expenses.

Principals

Individuals or entities that authorize agents to act on their behalf in business transactions.

Incentivizing Agents

Strategies to motivate individuals or entities acting on behalf of others or organizations towards desired behaviors or goals, often through rewards or benefits.