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.

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Definitions:

Budget Line

A graphical representation showing all possible combinations of two goods that a consumer can afford with a given income and prices.

Vertical Intercept

The point where a line crosses the vertical axis on a graph, indicating the value of y when x is zero.

Milkshakes

A creamy beverage made from milk, ice cream, and often flavorings or sweeteners like syrup or fruit.

Budget Line

A graphical representation showing all possible combinations of two goods that can be purchased with a given budget at set prices.