a) The aggressive funding strategy is a strategy by which a firm finances all projected funds requirements with long-term funds and uses short-term financing only for emergencies or unexpected outflows.
A) True
B) False
b) The ____ of a firm is the amount of time required for a company to convert cash invested in its operations to cash received as a result of its operations.
A) Cash conversion cycle
B) Cash turnover
C) Average collection period
D) Average age of inventory
c) A firm can reduce its cash conversion cycle by _____.
A) Increasing the operating cycle
B) Increasing the average collection period
C) Increasing the average age of inventory
D) Increasing the average payment period