MrSmith and Sr

question 91

Multiple Choice

Mr.Smith and Sr.Zarza are negotiating an international contract for the sale of wicker furniture.They have agreed that,while they hope there will be no disputes,they want to include terms in the contract that would ensure that any disputes would be resolved favourably with limited time delay and minimal expense.Which of the following set of terms should they include in their contract?

• A)limited liability,insurance,and mediation of disputes
• B)unlimited liability,insurance,and arbitration of disputes
• C)limited liability,payment in 90 days,and arbitration of disputes
• D)limited liability,insurance,mediation of disputes,and payment in 90 days
• E)limited liability,insurance,and arbitration of disputes

---

Definitions:

Inventory Turnover

A financial ratio that measures the number of times inventory is sold or used over a given period, indicating the efficiency of inventory management.

Days' Sales

Days' sales, often used in the context of days' sales outstanding (DSO), measures the average number of days that a company takes to collect revenue after a sale has been made.

Financial Statements

Structured documentation of financial transactions and status of a company, individual, or different entity.

Vertical Analysis

A method of financial statement analysis in which each entry of the main categories of the financial statements is listed as a percentage of another item.