$1)$ Service companies, since they provide services rather than goods, don$$t hold inventories $($or don$$t hold inventories that are meaningful for their sales process and therefore measures of inventories, like inventory turnover, are meaningless$).$ Instead, what is the critical $$asset usage$$ metric for service companies?

$($a$)$ Spread, or the earnings on receivables compared to the cost of payables

$($b$)$ Collection time, or the ability to convert receivables quickly to cash

$($c$)$ Capital intensity, like PP&E$,$ which reflects substantial equipment assets

$($d$)$ Intangibles and goodwill, reflecting successful acquisitions

$($e$)$ There is no consistent asset usage metric indicating a successful service$-$based business model

$2)$ A grocer would have higher inventory turnover compared with a jewelry store. A jeweler would be expected to have higher profit margins.

$($a$)$ Which indicates that a grocer would be more profitable

$($b$)$ Which indicates that a jeweler would be more profitable

$($c$)$ If we multiply asset turnover by profit margin, it equals return on assets, which would tell us which is more profitable

$($d$)$ none of these are true