What is the operating cycle? Describe a business entity with an operating cycle of less than six months and a business with an operating cycle of more than one year.

Peterson Products uses a zero-balance account for cash management purposes. McLeod Enterprises does not. If the firms are otherwise identical, one would expect McLeod to maintain a larger total cash safety stock than Peterson.

Which of the following is a correct statement regarding whether the shape of a product or package may be a trademark?

A) The shape of a product may be a trademark if it is nonfunctional,but the shape of a package may not be the subject of a trademark.
B) The shape of a product may be a trademark if it is functional,but the shape of a package may not be the subject of a trademark.
C) The shape of a product or package may be a trademark if it is functional.
D) The shape of a product or package may be a trademark if it is nonfunctional.
E) The shape of a package may be a trademark if it is nonfunctional,but the shape of a product may not be the subject of a trademark.

All else constant, which one of the following will increase the internal growth rate?

A) An increase in fixed assets.
B) An increase in the dividend payout ratio.
C) An increase in the plowback ratio.
D) A decrease in net income.
E) An increase in total assets.

Which one of the following below is not an element of internal control?

A) risk assessment
B) monitoring
C) information and communication
D) cost-benefit considerations

Jake, the CEO of WinWest Inc., launches a new product. Despite the product's persistent failure, he is unwilling to withdraw it from the market because he believes that the product will be profitable in the long term. This scenario is an example of _____.

A) path dependency
B) risk aversion
C) escalation of commitment
D) participative decision making