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

---

Definitions:

Dispositional Attribution

A psychological process whereby individuals attribute behavior to the internal characteristics of the agent, rather than to external factors.

Situational Attribution

The process of attributing a person’s behavior to external or environmental factors.

Rational

Based on reason or logic; characterized by clear, logical thinking or the ability to make reasoned decisions.

Impulsively Spent

Actions of spending money without careful thought or consideration, often driven by sudden urges.