Cash Conversion Cycle (CCC) Combines Three Factors: the Inventory Conversion

question 19

True/False

cash conversion cycle (CCC) combines three factors: The inventory conversion period, the average collection period, and the payables deferral period, and its purpose is to show how long a firm must finance its working capital Other things held constant, the shorter the CCC, the more effective the firm's working capital management.

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Definitions:

Matrix Structure

An organizational structure that creates dual lines of authority and combines functional and product departments in a way that allows for a high level of collaboration.

Primary Boss

The main supervisor or manager directly responsible for overseeing an employee's work performance and progress.

Secondary Bosses

Individuals in a workplace who have some degree of authority and responsibility for others but are not the primary supervisor.

Divisional Structure

An organizational framework where operations are grouped based on divisions, where each division operates as a semi-autonomous unit with its own management.