Podcast
Questions and Answers
What is the primary way in which working capital impacts a firm?
What is the primary way in which working capital impacts a firm?
- By influencing the stock price
- By affecting its free cash flow (correct)
- By increasing long-term debt
- By changing the tax rate
Which type of cash conversion cycle would firms generally NOT prefer?
Which type of cash conversion cycle would firms generally NOT prefer?
- Fluctuating cash conversion cycle
- Positive cash conversion cycle
- Negative cash conversion cycle (correct)
- Neutral cash conversion cycle
In working capital management, what does it involve?
In working capital management, what does it involve?
- Managing the firm's equity investments
- Managing only the firm's assets
- Managing all of a firm's assets and liabilities (correct)
- Managing only the firm's liabilities
What does a firm's cash cycle represent?
What does a firm's cash cycle represent?
Which factor is NOT directly impacted by effective working capital management?
Which factor is NOT directly impacted by effective working capital management?
What does a firm's operating cycle represent?
What does a firm's operating cycle represent?
Which firm's operations would likely require the most cash on a daily basis?
Which firm's operations would likely require the most cash on a daily basis?
What is the difference between a firm's operating cycle and its cash cycle?
What is the difference between a firm's operating cycle and its cash cycle?
Which formula accurately defines the cash conversion cycle (CCC)?
Which formula accurately defines the cash conversion cycle (CCC)?
What is the operating cycle of a firm primarily concerned with?
What is the operating cycle of a firm primarily concerned with?
In the context of a firm's daily operations, what role does the cash cycle play?
In the context of a firm's daily operations, what role does the cash cycle play?
Which factor does not directly influence a firm's need for daily cash?
Which factor does not directly influence a firm's need for daily cash?
