A Firm May Have a Negative Cash Conversion Cycle If

question 245

Multiple Choice

A firm may have a negative cash conversion cycle if it

• A) carries very little inventory and sells its products on credit.
• B) carries high inventory and sells its products on credit.
• C) carries very little inventory and sells its products for cash.
• D) carries high inventory and sells its products for cash.

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Definitions:

Skill Level

The degree of competence or proficiency one has in performing a specific task or set of tasks.

Engaging Activity

An action or task that captures one’s attention and interest, leading to active participation or involvement.

Physically Challenging

Describes activities or tasks that require significant physical effort, endurance, or strength to accomplish.

Intrinsically Rewarding

Referring to an activity or object that is rewarding in itself, not because of any external rewards it may bring.