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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Risky

Involving or exposing someone to danger or potential harm.

Confidentiality

The principle of maintaining privacy by not disclosing information shared in a trusted relationship, unless consented to or otherwise required by law.

Relative Confidentiality

A principle in certain professions where the confidentiality of client information is respected but may be overridden in specific circumstances determined by law or ethical guidelines.

Privilege

Special rights, advantages, or immunities granted or available only to a particular person or group of people.