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

question 114

Multiple Choice

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

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

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Definitions:

Altruistically Motivated

Being driven to act out of a desire to help others without expecting any personal gain, showcasing selfless behavior towards the welfare of others.

Audience Inhibition

Failure to help in front of others for fear of feeling like a fool if one’s offer of help is rejected

Egoistic Motives

Actions driven by self-interest, focusing on benefits or outcomes that primarily serve the individual's own needs or desires.

Diffusion of Responsibility

A phenomenon in which individuals in a group are less likely to take responsibility for action or inaction when others are present.