What Can a Company Do to Shorten Its Cash Conversion

question 62

Multiple Choice

What can a company do to shorten its cash conversion cycle?

• A) turn inventory over as quickly as possible
• B) collect accounts receivables as quickly as possible
• C) pay accounts as slowly as possible
• D) all of the above

Recognize the roles of taxes, imports, and household production in the circular flow of income and expenditure model.

Calculate and interpret the inflation rate using the consumer price index (CPI).

Assess the limitations of Gross Domestic Product (GDP) as a measure of social welfare and economic growth.

Understand the methodology and significance of the value added approach in GDP calculation to avoid double counting.

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Definitions:

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that categorizes human needs into a five-tier model of hierarchical levels, from basic needs to self-actualization.

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that outlines a five-tier model of human needs, from basic physiological needs to self-actualization.

Esteem

The respect and admiration that an individual receives from others, often linked to self-confidence and self-value.

Motivational Factors

Elements or conditions that inspire individuals to act or behave in a certain way to achieve desired objectives.