Increases in the cash conversion cycle will lower the firm's short-term financing needs.

Name: Increases in the cash conversion cycle will lower the firm's short-term financing needs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in cash conversion cycle means it takes longer for a company to collect its receivables and convert inventory into cash, which can lead to a cash shortage. This usually results in higher short-term financing needs, such as borrowing from a bank.

Increases in the Cash Conversion Cycle Will Lower the Firm's