Firms with Short Operating Cycles Will Experience Less of a Lag

question 11

Multiple Choice

Firms with short operating cycles will experience less of a lag between the creation and delivery of their products and the collection of cash from customers because:

• A) their cash flow from operations will be much greater than their working capital from operations.
• B) their cash flow from operations will not differ much from their working capital from operations.
• C) their cash flow from operations will be much less than their working capital from operations.
• D) there will be no relation between their cash flow from operations and working capital from operations.

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