A Firm with a Cash Conversion Cycle of 175 Days

question 187

Multiple Choice

A firm with a cash conversion cycle of 175 days wants to stretch its average payment period from 30 days to 45 days. This will result in a(n) ________ in the cash conversion cycle of ________ days.

• A) increase; 15
• B) decrease; 15
• C) increase; 45
• D) decrease; 45

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Definitions:

Ideological Argument

An argument that is primarily based on a set of beliefs or ideologies rather than empirical evidence or logical reasoning.

Premises

Statements or propositions from which a conclusion is drawn in logical reasoning.

Core Values

Fundamental beliefs or guiding principles that dictate behavior and action for individuals or organizations.

Ideological Reasoning

The method of thinking or arguing that is heavily influenced by a specific set of beliefs, values, or ideology.