An Increase in the Average Payment Period Will ________ the Operating

question 280

Multiple Choice

An increase in the average payment period will ________ the operating cycle and ________ the cash conversion cycle.

• A) increase; decrease
• B) decrease; decrease
• C) decrease; not affect
• D) not affect; decrease

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Definitions:

Tariffs

Taxes imposed by a government on imported goods, typically used to protect domestic industries from foreign competition.

Quotas

Restrictions set by governments on the quantity or value of goods that can be imported or exported, used to control trade balances and protect domestic industries.

Infant Industry

A new industry that is in its early stages of development and may be protected or supported by government policies.

Protection

Economic policies and actions, such as tariffs and quotas, taken by a government to shield domestic industries from foreign competition.