If a Firm Has a Cash Cycle of 47 Days

question 83

Multiple Choice

If a firm has a cash cycle of 47 days and an operating cycle of 92 days, what is its average payment period?

• A) 45
• B) 47
• C) 92
• D) 139

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Definitions:

Maslow's Theory

A psychological theory proposed by Abraham Maslow, which suggests that humans are motivated by a hierarchy of needs, starting from basic physical requirements to higher psychological needs, leading to self-actualization.

Achievement Needs

The drive or desire within an individual to accomplish goals and excel, often linked to motivation theory.

Reinforcement Theory

Explains human behavior in terms of repetition. Behavior that is rewarded enough times will be repeated, where behavior that repeatedly receives no reward will probably discontinue.

Goal Setting

The process of identifying something that you want to accomplish and establishing measurable objectives and timeframes.