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:

Psychological Contract

The unwritten, implicit expectations and beliefs about the mutual obligations between employees and employers beyond the formal employment contract.

HR Metrics

Quantitative measures used to track and assess the efficiency and effectiveness of HR policies, processes, and practices.

Productivity

The measure of efficiency in which goods and services are produced, often evaluated in terms of the output generated per unit of input.

Psychological Contract

The unwritten, informal agreement between an employer and employee that outlines mutual expectations, commitments, and obligations.