Other Things Held Constant, Which of the Following Would Tend

question 74

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 cash discounts that are offered.
• C) Continue to take all cash 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:

Destabilizing Forces

Factors or elements that threaten the stability or balance of systems, organizations, or societal conditions.

Food Desert

Areas with limited access to affordable and nutritious food, particularly impacting low-income neighborhoods and communities.

Obesity

A medical condition characterized by excess body fat that presents a risk to health.

Diabetes

A chronic health condition where the body is unable to properly process glucose, either due to insufficient insulin production or insulin resistance, leading to elevated blood sugar levels.