Business Studies

Operating cycle can be delayed by ________________.


ANSWER

Both (A) and (C) above


SOLUTION
Operating cycle period = Raw material storage period + Conversion period + Finished goods storage period + average collection period - average payment period.
Increase in WIP (or conversion) period will increase the operating cycle period and this will lead to delay in the operating cycle.
View Answers

You're just one step away

Create your Digital Resume For FREE on your name's sub domain "yourname.wcard.io". Register Here!


Single Correct Medium Published on 18th 08, 2020
Next Question
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 218
Enroll Now For FREE

Realted Questions

Q1 Single Correct Medium
Decisions for raising funds from long-term sources are called ___________.
  • A. capital structure decision
  • B. investment decisions
  • C. dividend decisions
  • D. investment of funds

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 Subjective Medium
Himanshu purchased a new car from 'Galaxy motors' for Rs 25 lakhs. he was offered free insurance for the first years and three free servicing to be availed after the card had covered 5,000 km, and 15000 km respectively. When Himanshu took the car for the first free servicing , he was told that the car was not new and first services had already been available on this car. He felt cheated and filled a complaint in the state commission. Being not satisfied with the decision of the state commission, after two months he decided to file an appeal against it.
Can Himanshu appeal against the decision of the state commission? GIve reason in support of your answer

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 TRUE/FALSE Medium
Preference shares are helpful for raising funds for a long period since they do not create any charge over the assets.
  • A. True
  • B. False

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Single Correct Medium
Which among the following is not the source of short term finance?
  • A. Trade credit
  • B. Customers advances
  • C. Installment credit
  • D. Equity financing

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 Single Correct Medium
When shares are issued at a price less than the face value, they are said to be issued at __________.
  • A. Premium
  • B. Par
  • C. None of above
  • D. Discount

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer