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Some discount stores are able to sell items before they have to pay their suppliers, resulting in a negative ________.

User Mike Cole
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Final answer:

The term needed to complete the statement is 'cash conversion cycle'. This term describes the period between payment to suppliers and receipt from customers; a negative value is favorable for a company's cash flow.

Step-by-step explanation:

The term you are looking for to complete the statement, 'Some discount stores are able to sell items before they have to pay their suppliers, resulting in a negative ________,' is cash conversion cycle. The cash conversion cycle measures the time between when a company pays its suppliers and when it receives payment for its products. A negative cash conversion cycle indicates that a company is able to sell its products before it has to pay its suppliers, which is beneficial for the company's cash flow.

User Ayyub Kolsawala
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