If a Firm Takes Actions That Reduce Its Days Sales

question 95

True/False

If a firm takes actions that reduce its days sales outstanding (DSO),then,other things held constant,this will lengthen its cash conversion cycle (CCC)and cause a deterioration in its cash position.

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Definitions:

Resource Limitations

Constraints on the availability of resources such as time, money, manpower, and materials that can impact the execution of projects or tasks.

Interorganizational Agreements

Formal agreements between two or more organizations to cooperate on certain projects or share resources.

Mechanistic Organization

A highly structured and efficient organization form, characterized by rigid hierarchies, clear roles, and centralized decision-making.

Status Quo

The current status or circumstances, typically used to denote a scenario that has not altered.