Firms typically would prefer a negative cash conversion cycle versus a positive cash conversion cycle.

Name: Firms typically would prefer a negative cash conversion cycle versus a positive cash conversion cycle.
Brand: Quizplus
Rating: 4.8 (53 reviews)

Question

Quizplus · Accepted Answer

A negative cash conversion cycle means that a company is able to collect cash from customers faster than it pays its suppliers, which leads to a lower need for working capital and a more efficient cash flow process. Therefore, firms would prefer a negative cash conversion cycle.

Firms Typically Would Prefer a Negative Cash Conversion Cycle Versus