If a Firm Takes Actions That Reduce Its Days Sales

question 116

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).

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Definitions:

Vroom-Jago Time-driven

A decision-making model that focuses on the importance of time in making decisions, incorporating the evaluation of how much time is available and how it impacts decision effectiveness.

Political Behavior

Actions by individuals or groups within an organization that are aimed at using power to influence or control the actions of others.

Organizations

Groups of people structured and managed to meet a particular need or to pursue collective goals.

Situation Aspects

The various elements or circumstances that define a particular situation or context, influencing its outcome or how it is perceived.