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Which one of the following statements is correct? A . Having large amount of cash reserve implies lower opportunity costs B . Operating cycle captures
Which one of the following statements is correct?
A
Having large amount of cash reserve implies lower opportunity costs
B
Operating cycle captures a time difference between when the firm is paying for inventory and when the firm is receiving cash from sales
C
Cash cycle can be negative if a firm has very strong bargaining power and profitable business
D
The total cost of current asset will be minimized when carrying cost is minimized
E
The total cost of current asset will be minimized when shortage cost is minimized
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