Of the 4 Strategies Described Below,which One Is Most Likely

question 15

Multiple Choice

Of the 4 strategies described below,which one is most likely to lead to the highest increase of the ratio of cash flow from operations to income from operations?

• A) Reduce credit terms to customers,increase inventory levels,increase payables
• B) Increase credit terms to customers,increase inventory turnover,negotiate longer credit terms with suppliers
• C) Reduce credit terms to customers,keep inventory level steady,increase payables
• D) Increase sales revenue by extending longer credit terms to customers,reduce inventory levels,and reduce payables faster than inventories are reduced

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Definitions:

Trustee Services

Services provided by an entity (a trustee) who holds or manages assets or property for the benefit of a third party.

Trust Companies

Financial institutions that act as agents for individuals or businesses to manage, invest, and safeguard assets.

Corporate Income Tax

Taxes imposed on the net income of corporations.

Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.