If a Firm Takes Actions That Reduce Its Days Sales

question 95

True/False

If a firm takes actions that reduce its days sales outstanding (DSO),then,other things held constant,this will lengthen its cash conversion cycle (CCC)and cause a deterioration in its cash position.

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Definitions:

Lucrative

Generating a significant profit or financial gain, often used to describe business ventures or investments.

CRM Program

A strategy and software system designed to manage a company’s interactions with current and potential customers, aiming to improve business relationships.

Lifetime Value

The total revenue a business can expect from a single customer throughout the duration of their relationship.

Customer Equity

The total combined customer lifetime values of all the company’s customers, representing the financial value of the customer base.