Firms can grow faster and decrease their cash conversion cycle by doing all of the following except:

Question

Quizplus · Accepted Answer

Reducing production costs may help firms become more efficient and profitable but it does not directly affect their cash conversion cycle. Delaying payment of bills may seem beneficial in the short-term, but it can damage relationships with suppliers and harm the firm's creditworthiness. Increasing inventory turnover and reducing collection time are both effective ways to decrease the cash conversion cycle.

Firms Can Grow Faster and Decrease Their Cash Conversion Cycle