problem1: Which of the following actions are likely to reduce the length of a company's cash conversion cycle?

[A] Adopting a just-in-time inventory system which reduces the inventory conversion period.

[B] Reducing the average days sales outstanding (DSO) on its accounts receivable.

[C] Reducing the amount of time the company takes to pay its suppliers.

[D] All of the answers above are correct.

[E] Answers A and B are correct.

problem2: A lockbox plan is most beneficial to firms which

[A] Have a large marketable securities account to protect.

[B] Hold inventories at many different sites.

[C] Send payables over a wide geographic area.

[D] Have widely disbursed manufacturing facilities.

[E] Make collections over a wide geographic area.

problem 3: Find which of the following statement completions is most correct? If the yield curve is upward sloping, then a firm's marketable securities portfolio, supposed to be held for liquidity purposes, should be

[A] Weighted toward U.S. Treasury securities to avoid interest rate risk.

[B] Weighted toward short-term securities to avoid interest rate risk.

[C] Weighted toward long-term securities because they pay higher rates.

[D] Weighted toward short-term securities because they pay higher rates.

[E] Balanced between long- and short-term securities to minimize the effects of either an upward or a downward trend in interest rates.