Suppose MMP Changes Its Policy and Starts Requiring All of Its

question 100

Multiple Choice

Suppose MMP changes its policy and starts requiring all of its customers to pay within 20 days rather than the 30 days that it currently allows.Which one of the following will result from this change?

• A)Increase in receivables period
• B)Increase in inventory period
• C)Decrease in cash cycle
• D)Increase in operating cycle
• E)Increase in accounts payable period

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Definitions:

Unanticipated Ways

Events or outcomes that occur in a manner not previously expected or predicted.

Avoided

The action of deliberately keeping away from or not doing something.

Conflict Management

The practice of identifying and handling conflicts in a sensible, fair, and efficient manner, with the aim of improving learning and group outcomes.

Negotiation Strategies

The plans or methods used to come to mutually agreeable terms in a dispute or discussion.