For Minimizing the Cash Conversion Cycle, a Firm Should ________

question 120

Multiple Choice

For minimizing the cash conversion cycle, a firm should ________.

• A) grant longer credit terms to customers to maintain healthy business relations
• B) pay off accounts payables as fast as possible to gain credibility
• C) turn over inventory as quickly as possible without stockouts
• D) increase mail managing, processing, and clearing time when collecting from customers

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Definitions:

Taxation

The process by which a government imposes charges on citizens and corporate entities to finance government spending and public services.

Gasoline Tax

A tax imposed by governments on the sale of gasoline, typically used to fund transportation-related projects.

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to tax, resulting in taxpayers paying the same percentage of their income regardless of the income level.

Higher-income Persons

Individuals or households that have an income significantly above the average for a certain society or area.