How can you best describe the "operating cycle"?

Select an answer:

• The operating cycle is the conversion from inventory to receivables to cash.

• The operating cycle is the method of billing customers for sales and collecting cash.

• The operating cycle is the lead time between placing orders with vendors and receiving the product.

• The operating cycle is the timeframe a company uses when creating its statement of cash flows.

What is Beta and how does it relate to risk?

Select an answer:

• Beta is the risk that cannot be avoided through diversification.

• Beta is the risk that cannot be avoided when making an investment.

• Beta is the inherent risk of making investments in a market.

• Beta is the measure of the different returns from similar investments.

You are now retired and decide you want to spend your retirement touring the country in an RV. Yet, when you crunch the numbers, you decide not to. What factor is not included in your calculations?

Select an answer:

• the net present value of the RV

• the cost of the enjoyment you could have received from the RV

• the enjoyment you could have received from the RV

• the opportunity cost in choosing another vehicle