A Firm May Have a Negative Cash Conversion Cycle If

question 297

Multiple Choice

A firm may have a negative cash conversion cycle if it carries ________.

• A) very little inventory and sells its products on credit
• B) high inventory and sells its products on credit
• C) very little inventory and sells its products for cash
• D) high inventory and sells its products for cash

---

Definitions:

Dependency Theory

A theory that suggests developing nations remain impoverished and dependent due to the exploitation and influence of developed nations.

World Stratification

This term describes the hierarchical layering of countries, often based on economic status, such as developed, developing, and underdeveloped, highlighting global inequalities.

Economic Development

The process of improving the economic well-being and quality of life for a community or country by increasing income, reducing poverty, and managing sustainable growth.

Fertility Rates

The average number of children that would be born to a woman over her lifetime, given current birth rates.