A Negative Cash Conversion Cycle

question 142

Multiple Choice

A negative cash conversion cycle

• A) means that the operating cycle exceeds the average payment period.
• B) means that the average payment period exceeds the operating cycle.
• C) indicates that the firm is shortening its average payment period and lengthening its average collection period.
• D) is easy for a manufacturing firm to attain.

---

Definitions:

Legal Institutions

Structures and mechanisms of social order and cooperation governing the behavior of a set of individuals within a given human community, focusing on laws and regulations.

Same Rights

the principle that all individuals should have equal legal entitlements and freedoms without discrimination.

Cognitive Separation

The mental process of distinguishing between different concepts, objects, or individuals, aiding in understanding and decision-making.

Individualistic

Emphasizes the importance of personal independence and the self over group identity, valuing personal achievements and autonomy.