Zervos Inc

question 8

Multiple Choice

Zervos Inc.had the following data for 2008 The new CFO believes (1) that an improved inventory management system could lower the average inventory by $4,000, (2) that improvements in the credit department could reduce receivables by $2,000, and (3) that the purchasing department could negotiate better credit terms and thereby increase accounts payable by $2,000.Furthermore, she thinks that these changes would not affect either sales or the costs of goods sold.If these changes were made, by how many days would the cash conversion cycle be lowered?

• A)34.0
• B)37.4
• C)41.2
• D)45.3
• E)49.8

---

Definitions:

Internet Growth

The exponential increase in internet usage, online services, and digital connectivity that has transformed global communication, commerce, and access to information.

Game Plan

A strategic plan or set of tactics designed to achieve a specific goal or overcome a challenge.

Competitive Intelligence

The gathering and analysis of information about competitors, market trends, and other external factors that influence competitive advantage.

Market Scanning

The process of continuously analyzing the external environment to identify opportunities, threats, trends, and strategic uncertainties.