Empirical evidence suggests that retail firms such as Safeway have a shorter working capital gap than a heavy manufacturing firm such as Boeing.

Question

Quizplus · Accepted Answer

Retail firms typically have faster inventory turnover and receive payment from customers quicker than manufacturing firms, leading to a shorter working capital gap. Heavy manufacturing firms, on the other hand, may require longer periods of time to produce and deliver products, as well as a longer period to receive payment from customers.

Empirical Evidence Suggests That Retail Firms Such as Safeway Have