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1. Is it better to have a longer or shorter cash conversion cycle? Explain. 2. What is the goal of inventory management? 3. List one

1. Is it better to have a longer or shorter cash conversion cycle? Explain.

2. What is the goal of inventory management?

3. List one advantage and one disadvantage of using short-term debt to finance permanent current assets.

4. True or False. The effective rate on a discount loan is always higher than the rate on an otherwise similar simple interest loan.

5. Explain what the Economic Ordering Quantity (EOQ) model does.

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