Change, for a Firm, Is Sometimes

question 46

Multiple Choice

Change, for a firm, is sometimes:

• A)Massive and unpredictable
• B)Slow and incremental
• C)Fairly predictable
• D)A,B and C above

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Definitions:

Costly Trade Credit

Refers to the high cost associated with the short-term financing obtained by buyers from suppliers when they choose to delay payment.

Gross Purchases

The total amount of all purchases made by a business before deducting any discounts, returns, or allowances.

Credit Terms

Credit terms are the payments conditions set by sellers for goods and services, including the period provided to the buyer to settle the owed amount.

Cash Conversion Cycle

A metric that shows the time span between a company's outlay of cash for raw materials and receiving payment from its customers, effectively measuring the time each net input dollar is tied up in the production and sales process.