1. Define and identify the components of: a. Operating cycle b. Cash conversion cycle 2. What is the impact of longer cash conversion cycles on a firm's working capital needs? 3. Explain the...

1. Define and identify the components of:

a. Operating cycle b. Cash conversion cycle

2. What is the impact of longer cash conversion cycles on a firm's working capital needs?

3. Explain the profitability-risk trade-off of alternative levels of working capital balances..