A firm may have a negative cash conversion cycle if it carries ________
A) very little inventory and sells its products on credit
B) high inventory and sells its products on credit
C) very little inventory and sells its products for cash
D) high inventory and sells its products for cash
C
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A growing firm that delays payments at the end of each period reports larger cash flow from operations each period than if it had not delayed making the cash payments at the end of each period. Which of the following is true?
a. The firm is, in effect, obtaining short-term financing from its suppliers. b. Absent contracts or other agreements that preclude delayed payments, this business practice is legal. c. Sufficiently delayed payments might harm a firm's reputation. d. Sufficiently delayed payments might harm a firm's credit rating. e. All of the above are true.
Movies and vending machine products are common examples of items that use customary pricing
Indicate whether the statement is true or false