In terms of the cash conversion cycle, a restricted investment policy would tend to reduce the inventory conversion and receivables collection periods, which would result in a relatively short cash conversion cycle.

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A restricted investment policy would control the level of inventory and accounts receivables by limiting the purchase of inventory and extending credit to customers, respectively. This would lead to a shorter time period for converting inventory into cash and collecting receivables, resulting in a shorter cash conversion cycle.

In Terms of the Cash Conversion Cycle, a Restricted Investment