For a Levered Firm,an Additional 3-Day Delay in Paying Suppliers

question 76

Multiple Choice

For a levered firm,an additional 3-day delay in paying suppliers will

• A)reduce the firm's long-term external financing need.
• B)increase the firm's stock-out costs.
• C)increase the cash cycle by 3 days.
• D)reduce the operating cycle by 3 days.
• E)not affect the cash cycle.

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Definitions:

Behaviorism

A psychological approach that emphasizes the study of observable behaviors and the role of environmental forces in shaping behavior.

Conditioned

The learning process in which a response becomes associated with a previously unrelated stimulus.

Observing

The act of noticing or perceiving something and registering it as being significant.

Cognitive Psychology

A branch of psychology that studies mental processes including perception, thinking, memory, and judgment.