Answered: If you encourage your customers to pay…

If you encourage your customers to pay you sooner, the cash conversion cycle will O get shorter O get longer O get shorter or longer. There is not enough data to determine this, O will stay the same.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 8MC

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Question

Provide detailed reasoning for

the correct option, along with

an explanation - Why the

remaining options are

incorrect

If you encourage your customers to pay you sooner, the cash conversion cycle will
O get shorter
O get longer
O get shorter or longer. There is not enough data to determine this.
O will stay the same.

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