Influence of External factors in the organisation which ask for the change in the business function:
Explanation:
Big firms like Apple, Intel and other organisations o not work in Vacuum. Due to the changes in various sectors like - economy, market trends, consumer trends, government rules. Every organisation has to change the way of functioning. Below are few scenarios where quick decisions are made due to external changes:
1. Pay Parity : Recently law has been passed bu government where equal pay has to be distributed among male an female employees.
2.Strict Working Hours : No employee should be asked to work for more then 45 hours a week.
3. Maternity leave of 6 months: All organisation to grant 6 months of maternity leaves to the employees.
Above, examples are the decisions which company is following which is inline with the government rules and regulations.
B. An airline
An airline is a service organization.
Answer:
Accounts receivable turn over is 16.64
Explanation:
To compute accounts receivable turn over ratio, we simply divide net credit sales over the average accounts receivable.
Accounts receivable turn over ratio = $1,240,000/$74,500
= 16.64
The higher the ratio, the better it is in the company. It simply means, the company exercises the effective way to collect its receivable from the customer.
*Net credit sales is derived by deducting sales returns and allowances from gross credit sales. If the problem is silent regarding cash sales, we will assume that the sales made by the period is all at credit.
