A Firm Can Reduce Its Cash Conversion Cycle by

question 281

Multiple Choice

A firm can reduce its cash conversion cycle by

• A) increasing the average age of inventory.
• B) increasing the average collection period.
• C) decreasing the average payment period.
• D) increasing the average payment period.

Explain the structure and benefits of working in a sole proprietorship for paralegals.

Recognize the importance of consistent computer work backup and outline emergency planning steps.

Describe the purpose and use of client trust accounts, including the paralegal's role and repercussions for misuse.

Discuss the importance of careful filing procedures in legal practice and compare procedures in different firm sizes.

---

Definitions:

Operating Lease

An agreement permitting the utilization of a property without transferring ownership rights to it.

Lessor

The party in a lease agreement that owns the asset and grants the lessee the right to use the asset in return for lease payments.

Bargain Purchase Option

A lease clause allowing the lessee to purchase the leased asset at a price significantly lower than its expected fair market value at the end of the lease term.

Leased Asset's Useful Life

The expected period over which a leased asset is anticipated to be used by the lessee, often corresponding to the lease term unless a shorter period is more representative.