Which One of the Following Statements Is Correct Concerning the Cash

question 20

Multiple Choice

Which one of the following statements is correct concerning the cash cycle?

• A)The longer the cash cycle, the more likely a firm will need external financing.
• B)Increasing the accounts payable period increases the cash cycle.
• C)A positive cash cycle is preferable to a negative cash cycle.
• D)The cash cycle can exceed the operating cycle if the payables period is equal to zero.
• E)Offering early payment discounts to customers will tend to increase the cash cycle.

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Definitions:

Opinion Approach

Opinion approach is a sales technique where the salesperson starts a conversation by asking the customer's opinion, aiming to engage and gather valuable insights.

Introductory Approach

A method or strategy used at the beginning of a process, presentation, or interaction to establish a foundation or context.

Customer Benefit Approach

A sales technique that focuses on presenting how a product or service meets the specific needs or adds value for the customer.

Hand-Blown Glass Candleholders

Artistic pieces created by inflating molten glass into a bubble through a tube to form unique candleholders.