A Firm Wants to Reduce Its Cash Conversion Cycle

question 1

Multiple Choice

A firm wants to reduce its cash conversion cycle. Which of the following actions will reduce its cash conversion cycle?

• A) The firm reduces its DSO.
• B) The firm increases its inventory.
• C) The firm reduces its accounts payable.
• D) All of these.

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Definitions:

Dental Clinic

A healthcare facility specializing in the diagnosis, prevention, and treatment of diseases and conditions of the oral cavity.

Poisson Distribution

A probability distribution that indicates the likelihood of a specific number of occurrences happening within a certain time or space period, given that these occurrences happen at a constant average rate and are independent of the time elapsed since the prior occurrence.

Exponential Distribution

A statistical model that represents the intervals between occurrences in a continuous and independent process happening at a steady average pace.

Exponential Distribution

A statistical distribution used for modeling the time between events in a process where events occur continuously and independently at a constant average rate.