【正确答案】 B

【答案解析】A shorter operating cycle will lead to a shorter cash conversion cycle, other things equal, which is an indication of better working capital management. While credit policies that are too strict could also reduce the operating cycle, this is less of a concern than the other choices. Lower trade payables turnover and higher days inventory on hand, compared to peer company averages, will both tend to lengthen the cash conversion cycle, an indication of poorer working capital management.