Small Businesses Should Never Subcontract Production to Deal with Seasonal

question 44

True/False

Small businesses should never subcontract production to deal with seasonal variations in demand.

---

Definitions:

Processing Float

The time difference between when a payment is made and the funds are actually available in the payee's account.

Credit Policy

Guidelines that govern a company's extension of credit to customers, determining who is eligible and on what terms.

Credit Sales

Sales made by a business on credit, allowing customers to pay at a later date.

Receivables

Money owed to a company by its customers for goods or services that have been delivered or sold but not yet paid for.