If a Firm Decided to Speed Up Its Collection from Its

question 137

Multiple Choice

If a firm decided to speed up its collection from its customers by reducing the receivables period and kept the inventory period and payable period the same, then:

• A)Cash conversion cycle will increase
• B)Cash conversion cycle will decrease
• C)The firm's investment in working capital will be minimized
• D)Investment in working capital will be maximized

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Definitions:

Medieval Times

A historical period in Europe lasting from the 5th to the late 15th century, characterized by feudalism, castles, and knights.

Herbs

Plants with savory or aromatic properties that are used for flavoring food, medicinal purposes, or fragrances.

Inoculations

The process of introducing a vaccine into the body to produce immunity to a specific disease.

Sewerage

The infrastructure designed for the collection, transport, and disposal of sewage.