1) Proper operational management involves managing so as to make a profit and managing working capital accounts so as to

a) minimize interest income

b) maintain adequate liquidity and cash flow

c) maximize interest expense

d) maximize the investment in those accounts

2) Implementing a just-in-time inventory management system necessitates eliminating delays, waste and bottlenecks in

a) the ordering process

b) the production process

c) the storage of finished goods

d) the ordering process and production process

e) the ordering process, production process, and storage of finished goods

3) Days inventory held is a measure of the

a) average time elapsing from the time an order is placed until it is shipped

b) average inventory level multiplied by the number of days in the period

c) average length of time an inventoried items is in stock before it is sold

d) none of the above

4) The sum of the delays in collecting cash from customers is known as

a) disbursement float

b) cash conversion period

c) working capital cycle

d) liquidity requirement

e) collection float

5) The current ratio of a firm would be increased by which of the following?

a) land held for investment is sold for cash

b) equipment is purchased, financed by a long-term debt issue

c) inventories are sold for cash

d) inventories are sold on a credit basis