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If a firm starts selling its accounts receivable to a factor, how will the firm's cash cycle change? The firm will increase its cash cycle
If a firm starts selling its accounts receivable to a factor, how will the firm's cash cycle change?
The firm will increase its cash cycle since it will now have to wait longer for payment. | |
The firm will decrease its cash cycle since accounts receivable is reduced. | |
Depending on conditions, the cash cycle could either increase or decrease. | |
There will be no change. |
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