Improving Cash Flow in Relation to Debtors and Creditors, Respectively

question 3

Multiple Choice

Improving cash flow in relation to debtors and creditors, respectively, requires:

• A) slowing collections and speeding up payments.
• B) speeding up collections and slowing payments.
• C) slowing collections and slowing payments.
• D) speeding up collections and speeding up payments.

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Definitions:

Price Ceiling

A government-imposed limit on how high a price can be charged on a product, intended to protect consumers from high prices.

Consumers

Consumers are individuals or organizations that acquire goods and services for private purposes.

Price Control

Regulatory measures by which a government intervenes in the market to adjust prices, typically to protect consumers or producers.

Price Ceiling

A maximum price set by the government for certain goods to ensure they remain affordable to the general public.