A Firm Wants to Reduce Its Cash Conversion Cycle

question 21

Multiple Choice

A firm wants to reduce its cash conversion cycle.Which of the following actions will reduce its cash conversion cycle?

• A)The firm reduces its DSO.
• B)The firm increases its inventory.
• C)The firm reduces its accounts payable.
• D)All of these are actions that will reduce its cash conversion cycle.

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Definitions:

Hibernation

Long-term torpor in response to winter cold and scarcity of food. Compare with estivation.

Basking

Basking is a behavior observed in various animals, especially reptiles, where individuals expose themselves to sunlight or another heat source to regulate body temperature.

Cancer Risk

The probability of developing cancer over a certain period, influenced by genetic factors, lifestyle choices, and environmental exposures.

Decrease Risk

A strategy or action taken to reduce the likelihood of facing potential threats or negative outcomes.