A Firm with a Cash Conversion Cycle of 175 Days

question 187

Multiple Choice

A firm with a cash conversion cycle of 175 days wants to stretch its average payment period from 30 days to 45 days. This will result in a(n) ________ in the cash conversion cycle of ________ days.

• A) increase; 15
• B) decrease; 15
• C) increase; 45
• D) decrease; 45

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Definitions:

Superego

In psychoanalytic theory, the part of the personality that acts as a moral center, imposing ethical standards and societal rules.

Ego

In psychoanalytic theory, the part of the personality that mediates between the impulses of the id, the demands of the environment, and the standards of the superego.

Collective Unconscious

A concept proposed by Carl Jung, referring to the part of the unconscious mind that is shared among beings of the same species and contains archetypes and universal experiences.

Behavioral Consistency

The concept that suggests an individual's behavior in one situation will be similar in another situation if the underlying trait conditions are present.