The Longer Its Customers Normally Hold Inventory, the Longer the Credit

question 99

True/False

The longer its customers normally hold inventory, the longer the credit period supplier firms normally offer.Still, suppliers have some flexibility in the credit terms they offer.If a supplier lengthens the credit period offered, this will shorten the customer's cash conversion cycle but lengthen the supplier firm's own CCC.

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Definitions:

Merkel Disks

Slow-adapting tactile receptors in the skin that respond to light touch and pressure.

Cerebral Cortex

The outer layer of the brain's cerebrum, involved in many complex brain functions including memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Broca Area

An area located within the dominant hemisphere's frontal lobe (typically the left side) of the brain, responsible for controlling speech generation.

Motor Speech Area

A region of the brain, typically located in the frontal lobe, involved in the planning, control, and execution of voluntary speech.