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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Definitions:

Aortic Arch

The curved portion of the aorta between its ascending and descending parts, giving rise to branches that supply the head, neck, and upper limbs with blood.

Thrombus

A blood clot that forms in a blood vessel, potentially obstructing the flow of blood through the circulatory system.

Blood Flow

The continuous movement of blood through the circulatory system, delivering nutrients and oxygen to and removing wastes from cells and tissues.

Superior Mesenteric Artery

A major artery that supplies blood to the intestines, including parts of the stomach, pancreas, and the lower portion of the esophagus.