A Firm Has a Cash Conversion Cycle of 60 Days

question 244

Multiple Choice

A firm has a cash conversion cycle of 60 days and average collection period of 40 days. The firm'soperating cycle is__________ days.

• A) 20
• B) 50
• C) 100
• D) cannot be determined

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Definitions:

Self-fulfilling Prophecy

A prediction or expectation that causes itself to become true, due to the feedback between belief and behavior.

Attribution

The process by which individuals explain the causes of behavior and events, typically as being either internally (personally) or externally (situationally) driven.

Primary Drive

refers to the innate biological instincts, such as hunger and thirst, that motivate behavior required for survival.

Response Characteristic

A specific reaction or behavior exhibited by an individual in response to a stimulus or situation.