If You Delay Paying Your Suppliers by an Additional Ten

question 116

Multiple Choice

If you delay paying your suppliers by an additional ten days,then:

• A)your payables turnover rate will increase.
• B)your stock-out costs will rise.
• C)the cash cycle will increase by ten days.
• D)your operating cycle will lengthen by ten days.
• E)you will require less bank financing of your operations.

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Definitions:

Affective Events Theory

A theory that proposes that workplace events cause emotional reactions on the part of employees, which then influence workplace attitudes and behaviors.

Personality

The combination of characteristics or qualities that form an individual's distinctive character.

Organizational Commitment

Organizational commitment is the loyalty of an individual to the organization.

Emotional Commitment

A deep, affective attachment to an organization or cause that surpasses mere loyalty or intellectual agreement.