Other Things Held Constant,which of the Following Would Tend to Reduce

question 108

Multiple Choice

Other things held constant,which of the following would tend to reduce the cash conversion cycle?

• A) Carry a constant amount of receivables as sales decline.
• B) Place larger orders for raw materials to take advantage of price breaks.
• C) Take all discounts that are offered.
• D) Continue to take all discounts that are offered and pay on the net date.
• E) Offer longer payment terms to customers.

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Definitions:

401(k) Plan

A retirement savings plan sponsored by an employer that allows workers to save and invest a piece of their paycheck before taxes are taken out.

Paid Leave

Time off from work that is compensated, including but not limited to vacation, sick leave, and parental leave.

Organizational Hierarchy

A system in which people within an organization are ranked according to levels of importance or authority.

Vacation Days

allotted days where an employee is permitted to be absent from work for personal time, often paid.