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Jane Has Started a Gift Basket Company That Specialises in Regional

question 7

Essay

Jane has started a gift basket company that specialises in regional products.Several companies use her baskets for the holidays, to welcome new employees and for their sales staff to use as gifts for corporate clients.Because she noticed her average collection period from last quarter to this quarter had doubled to 60 days, she then realised the company's average age in inventory has increased from 30 to 40 days and the average payment period dropped from 35 to 30 days.After calculating each quarter's cash conversion cycles, what do the changes indicate?


Definitions:

Compulsory

Required by law or a rule; obligatory, leaving no option for avoidance.

Conjunctive Task

A task in which the performance of the group is determined by the performance of the least efficient member.

Disjunctive Task

A type of group task where the success of the group depends on the performance of the most skilled or knowledgeable member.

Social Psychology

The scientific study of how individuals think, feel, and behave in social contexts, including how people influence and interact with each other.

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