A Firm Has an Average Age of Inventory of 60

question 8

Multiple Choice

A firm has an average age of inventory of 60 days, an average collection period of 45 days, and an average payment period of 30 days. The firm's cash conversion cycle is ________ days.

• A) 15
• B) 45
• C) 75
• D) 135

---

Definitions:

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology about human motivation.

Alderfer

Refers to Clayton Alderfer's ERG theory, which categorizes human needs into three groups: existence, relatedness, and growth.

Motivation Theories

Theoretical frameworks that explain how individuals are motivated to achieve their goals and how this motivation influences their behavior.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act in a certain way based on their expectation that the act will be followed by a desired outcome.