A Firm with a Cash Conversion Cycle of 175 Days

question 99

Multiple Choice

A firm with a cash conversion cycle of 175 days can stretch its average payment period from 30 days to 45 days. This will result in a/an ________.

• A) decrease of 30 days in the cash conversion cycle
• B) increase of 15 days in the cash conversion cycle
• C) decrease of 15 days in the cash conversion cycle
• D) increase of 30 days in the cash conversion cycle

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Definitions:

Service Quality

The evaluation of the alignment between a customer's expectations and the quality of service provided.

Evaluate Service

The process of assessing the quality, efficiency, and satisfaction provided by a service to ensure it meets or exceeds customer expectations.

Frontline Employees

Workers who directly interact with customers, playing a critical role in customer service and experience.

Service Standards

The predefined levels of quality and performance in service delivery that a business commits to achieve in its customer interactions.