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:

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing mannerisms, attitudes, and behavioral patterns.

Temperament

The term for the individual modes of responding to the environment that appear to be consistent across situations and stable over time. Temperament includes such characteristics as children’s activity level, their intensity of reaction, the ease with which they become upset, their characteristic responses to novelty, and their sociability.

Innate Propensities

Natural tendencies or inclinations that individuals are born with.

Social Development

The process by which individuals acquire the values, behaviors, and social skills necessary for functioning effectively in society.