The Cash Cycle Is Equal To

question 34

Multiple Choice

The cash cycle is equal to:

• A)the operating cycle minus the accounts receivable period
• B)the inventory period minus the accounts payable period
• C)the accounts receivable period minus the accounts payable period plus the inventory period
• D)the inventory period minus the accounts receivable period minus the accounts payable period
• E)the operating cycle plus the accounts payable period

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Definitions:

Venture Capital Acquisition

This refers to the purchasing of a company or a significant share of a company by a venture capital firm to provide capital for the start-up or expansion phases.

Optimal Amount

The most desirable quantity that maximizes efficiency or benefits based on available resources and constraints.

Expand R&D

The process of investing more resources into Research and Development to innovate and improve products or services.

Expected Rate Of Return

The anticipated profit or loss on an investment, expressed as a percentage of the investment's original cost.