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To speed up the cash conversion cycle a company can: (Check all that apply).Multiple select question.negotiate short time to pay suppliersoffer customers a discount for prompt paymentadopt lean inventory principlesoffer customers more days to payoffer customers fewer days to pay

Question

To speed up the cash conversion cycle a company can: (Check all that apply).Multiple select question.negotiate short time to pay suppliersoffer customers a discount for prompt paymentadopt lean inventory principlesoffer customers more days to payoffer customers fewer days to pay

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Solution

To speed up the cash conversion cycle a company can:

  1. Negotiate short time to pay suppliers: This reduces the amount of time cash is tied up in accounts payable, thus speeding up the cash conversion cycle.

  2. Offer customers a discount for prompt payment: This encourages customers to pay their invoices more quickly, reducing the amount of time cash is tied up in accounts receivable.

  3. Adopt lean inventory principles: This reduces the amount of cash tied up in inventory, thus speeding up the cash conversion cycle.

  4. Offer customers fewer days to pay: This reduces the amount of time cash is tied up in accounts receivable, thus speeding up the cash conversion cycle.

Offering customers more days to pay would actually slow down the cash conversion cycle, as it increases the amount of time cash is tied up in accounts receivable.

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Similar Questions

Multiple Select QuestionSelect all that applyTo speed up the cash conversion cycle a company can: (Check all that apply).Multiple select question.offer customers more days to payoffer customers fewer days to payadopt lean inventory principlesnegotiate short time to pay suppliersoffer customers a discount for prompt payment

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