What Can a Company Do to Shorten Its Cash Conversion

question 20

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

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Definitions:

Standardized Form Contracts

Pre-prepared legal agreements that are not tailored to individual negotiations but used universally across many transactions.

Negotiable

Capable of being transferred from one party to another as a form of payment or as fulfilment of a contract.

Voidable Contract

A legal agreement that may be considered invalid upon the request of one of the parties due to certain defects, such as misrepresentation or lack of capacity at the time of execution.

Statute Of Limitations

A statute that requires that certain classes of lawsuits must be brought within defined limits of time after the right to begin them accrued or the right to bring the lawsuit is lost.