If the cash conversion cycle is shortensr, then the firm's investment in inventories and receivables will always be smaller.

Question

Quizplus · Accepted Answer

A shorter cash conversion cycle means the firm is able to convert its inventories and receivables into cash more quickly. As a result, the firm would need to invest less in inventories and receivables to maintain its operations, leading to a smaller investment in these areas.

If the Cash Conversion Cycle Is Shortensr, Then the Firm's