If You Extend Credit, It Is Critical to Minimize This

question 35

Multiple Choice

If you extend credit, it is critical to minimize this number to keep cash flowing.

• A) receivable turnover ratio
• B) inventory turnover ratio
• C) collection-period ratio
• D) debt-to-equity ratio

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Definitions:

Governmental Authority

The legal power or right vested in government institutions and officials to enact and enforce laws, make decisions, and regulate society.

Democracy

A form of government in which power is vested in the people, either directly or through elected representatives, based on principles of freedom, equality, and rule of law.

NLRA

Stands for the National Labor Relations Act of 1935, a foundational piece of U.S. labor law that protects the rights of employees to organize and collectively bargain.

Company Property Rights

The legal rights that a company holds over its owned physical and intellectual properties, ensuring it can use, manage, and dispose of such assets according to its interests.