Operating Cycle: What Is the Operating Cycle for Ridge Company

question 45

Multiple Choice

Operating cycle: What is the operating cycle for Ridge Company?

• A) 47 days
• B) 85 days
• C) 36 days
• D) 51 days

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Definitions:

Liability Waiver

A legal document in which a person agrees to relinquish the right to sue or claim against another party in case of injury or damage.

Illegal Agreement

A contract based on the premise or performance of an activity that violates the law, making it unenforceable.

Noncompetition Clause

A provision in a contract that restricts one party from entering into or starting a similar profession or trade in competition against another party.

Legitimate Business Purpose

A reasonable, lawful reason for engaging in a particular business activity or decision.