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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