If Managers Could Automatically Change Each Term in the Equation

question 67

Multiple Choice

If managers could automatically change each term in the equation of the cash conversion cycle, which of the following would be expected to provide the most benefit?

• A)decrease numerator of each term by 10%
• B)decrease denominator of each term by 10%
• C)increase numerator of each term by 10%
• D)increase denominator of each term by 10%

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Definitions:

Economic Forces

Represent the various external factors that influence the economy and affect businesses and consumers, such as inflation, interest rates, and unemployment rates.

Global Compensation Strategy

Involves designing and implementing compensation practices that are consistent worldwide while also accommodating local laws, practices, and expectations.

Competitiveness

The ability of a company, country, or individual to produce goods and services at a lower cost, higher quality, or more innovatively than competitors.