Which of the following statements is CORRECT?
A. A decline in a firm's inventory turnover ratio suggests that it is improving both its inventory management and its liquidity position, i.e., that it is becoming more liquid.
B. In general, it's better to have a low inventory turnover ratio than a high one, as a low one indicates that the firm has an adequate stock of inventory relative to sales and thus will not lose sales as a result of running out of stock.
C. If a firm's fixed assets turnover ratio is significantly lower than the average for its industry, then it could be that the firm uses its fixed assets very efficiently or is operating at over capacity and should probably add fixed assets.
D. The more conservative a firm's management is, the higher the firm's total debt to total capital ratio is likely to be.
E. The days sales outstanding ratio tells us how long it takes, on average, to collect after a sale is made. The DSO can be compared with the firm's credit terms to get an idea of whether customers are paying on time.
Answer: E
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Which of the following traits are associated with charismatic leadership?
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A survey of business students who had taken the Graduate Management Admission Test (GMAT) indicated that students who have spent at least five hours studying GMAT review guides have a probability of 0.85 of scoring above 400. Students who do not review have a probability of 0.65 of scoring above 400. It has been determined that 70% of the business students review for the test. a.Find the probability of scoring above 400.b.Find the probability that a student who scored above 400 reviewed for the test.
What will be an ideal response?
The adjusting entry to record inventory shrinkage would generally include a debit to Cost of Merchandise Sold
Indicate whether the statement is true or false
________ of a service means that because it can't be separated from the provider, a service's quality can only be as good as that of the provider.
A. Tangibility B. Variability C. Intangibility D. Separability E. Perishability