1. If you randomly chose a sample of firms and then calculated the operating cycle (OC) of each firm, what is likely to be the key cause of differences in their operating cycles? What goal should these firms attempt to achieve with regard to their OCs? How and why?
2. Why would a firm wish to minimize its cash conversion cycle (CCC) even though each of its components is important to the operation of the business? What key actions should the firm pursue to achieve this objective?