Assume All Else Held Constant

question 32

Multiple Choice

Assume all else held constant. If you pay your suppliers three days sooner, then:

• A) your payables turnover rate will decrease.
• B) you may require additional funds from other sources to fund the cash cycle.
• C) the cash cycle will decrease.
• D) your operating cycle will decrease.
• E) the accounts receivable period will decrease.

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Definitions:

Impermanence

The philosophical and practical understanding that all things are transient and subject to change.

Strategic Alliance

A partnership that organizations join to pursue an area of mutual interest.

Business Agreement

A formal arrangement between two or more parties outlining terms and conditions related to business activities.

Joint Venture

A venture that operates in a foreign country through co-ownership by foreign and local partners.