Other Things Held Constant,which of the Following Would Tend to Reduce

question 114

Multiple Choice

Other things held constant,which of the following would tend to reduce the cash conversion cycle?

• A) Place larger orders for raw materials to take advantage of price breaks.
• B) Take all discounts that are offered.
• C) Continue to take all discounts that are offered and pay on the net date.
• D) Offer longer payment terms to customers.
• E) Carry a constant amount of receivables as sales decline.

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Definitions:

Chartered Bank

A financial institution that has been established and operates under a charter granted by the government, offering a range of banking services.

Partnership

A form of business legally organized by multiple individuals who participate in managing the enterprise and dividing its earnings.

Bank of Nova Scotia

A multinational Canadian banking and financial services company also known as Scotiabank.

VALS Profile

A psychographic tool developed to categorize consumers into types based on their values, attitudes, and lifestyles to better understand buying behavior.