Which of the Following Is Least Likely to Be Correct

question 127

Multiple Choice

Which of the following is least likely to be correct for a firm that repeatedly stretches its payables?

• A)the firm may receive more favourable status from suppliers due to its volume of purchases
• B)the firm may reduce its explicit short-term interest expense
• C)the cost of forgone discounts may exceed the cost of bank credit
• D)the firm may be labeled as a credit risk

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Definitions:

Wealthy Minority

A small segment of the population that holds a disproportionately large share of the total wealth and economic resources of a society.

Governement Invests

The process by which the government spends on capital projects or injects funds into the economy, aiming to promote economic growth.

Labor Productivity

A measure of economic output per unit of labor input, often assessed as output per hour worked.

Quality of Labor

Refers to the skill levels, education, training, and productivity of workers within an economy.