ACC501 Business Finance GDB No. 1 Solution Fall 2017 Due Date: November 16, 2017 

Total Marks 5
Starting Date Friday, November 10, 2017
Closing Date Thursday, November 16, 2017
Status Open
Question Title GDB
Question Description

Discussion Question:


Inventory turnover ratio measures the number of times an inventory item is sold or used in during a given time period. Generally, there is no norm for this ratio and it is appreciated to be compared against industry average. A high turnover ratio shows that company is turning its inventory into cash quickly, resulting a lower risk of having obsolete inventory and vice versa. 

Consider a case of Beta Corporation which is one of the leading rubber manufacturers. The company, enjoying rapid growth in the industry, is experiencing an exceptionally high inventory turnover ratio. This may signal some negative indications.


You are required to briefly discuss at least four possible negative indications with proper rationale.


Important Instructions:

  1. Your discussion must be based on logical facts.
  2. Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.
  3. Obnoxious or ignoble answer should be strictly avoided.
  4. Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.


Ø For Detailed Instructions please see the GDB Announcement


Tags: 1, 16, 2017, ACC501, Business, Date:, Due, Fall, Finance, GDB, More…No., November, Solution

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