Which of the Following Actions Would Be Likely to Shorten

question 32

Multiple Choice

Which of the following actions would be likely to shorten the cash conversion cycle?

• A) Change the credit terms offered to customers from 3/10 net 30 to 1/10 net 50.
• B) Begin to take cash discounts on inventory purchases; the terms are 2/10 net 30.
• C) Adopt a new manufacturing process that saves some labor costs but slows down the conversion of raw materials to finished goods from 10 days to 20 days.
• D) Change the credit terms offered to customers from 2/10 net 30 to 1/10 net 60.
• E) Adopt a new manufacturing process that speeds up the conversion of raw materials to finished goods from 20 days to 10 days.

Explain the significance of corporate governance and its impact on firm value.

Understand the accounting methods and legal aspects involved in mergers and acquisitions.

Define and differentiate between various forms of corporate restructuring and defensive tactics against takeovers.

Explain the concept of synergy in the context of mergers and acquisitions.

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Definitions:

Plastic

Synthetic or semi-synthetic organic compounds that are malleable and so can be molded into solid objects of diverse shapes, widely used for a variety of applications.

Recycled

The method of gathering and treating substances that would normally be discarded as waste and transforming them into new items.

North America

A continent located entirely in the Northern Hemisphere and mostly in the Western Hemisphere, composed of countries like the United States, Canada, and Mexico among others.

Energy-Efficient

Describes technologies or processes that use less energy to perform the same function as conventional ones, reducing energy waste.