A Firm with an Inventory Period of 30 Days, an Accounts

question 91

Multiple Choice

A firm with an inventory period of 30 days, an accounts receivable period of 30 days, and an accounts payable period of 90 days has a cash conversion cycle of _____ days.

• A) 150
• B) -60
• C) 30
• D) -30

---

Definitions:

Life Cycle

The series of changes in the life of an organism or product, including its inception, growth, and eventual decline.

Capital Requirements

The minimum amount of financial resources that a company needs to maintain its operations and meet regulatory obligations.

Fragmented Competition

describes a market structure where no single firm dominates the market, and many small companies compete for market share.

Opportunity Recognition

The process of identifying and evaluating potential business or investment opportunities.