Float Is Important in the Cash Conversion Cycle of a Firm

question 233

Multiple Choice

Float is important in the cash conversion cycle of a firm because ________.

• A) its presence reduces a firm's average collection period
• B) its presence reduces a firm's average payment period
• C) its presence lengthens both a firm's average collection period and its average payment period
• D) its presence reduces the investment that a firm must make in its cash conversion cycle

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Definitions:

Organizational Trust

The belief in the reliability, truth, ability, or strength of an organization, fostering a positive working environment.

Hierarchy of Needs

A theory in psychology proposed by Abraham Maslow, categorized in a five-level model of human needs, from basic physiological needs to self-actualization.

Abraham Maslow

An American psychologist best known for proposing Maslow's hierarchy of needs, emphasizing a theory of human motivation based on a hierarchy of needs.

Total Person

A holistic concept referring to the multi-dimensional nature of individuals, encompassing physical, psychological, social, and spiritual aspects.