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Business, 18.06.2020 18:57 anggar20

Is there generally a positive or negative relationship between net working capital and the cash conversion cycle? (In other words, if a firm has a high level of net working capital, is it likely to have a high or low cash conversion cycle?) There is a negative relationship between net working capital and the cash conversion cycle. There is a positive relationship between net working capital and the cash conversion cycle. What are the four key factors in a firm’s credit policy? Credit period, discounts, credit standards, and collection policy Credit terms, discounts, credit standards, and collection policy If the credit terms as published by a firm were 2/15, net 60, this means the firm will: allow a 2% discount if payment is received within 15 days of the purchase, and if the discount is not taken the full amount is due in 60 days. allow a 15% discount if payment is received within 2 days of the purchase, and if the discount is not taken the full amount is due in 60 days.

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