A Third-Party Logistics (3PL) Firm Is Defined as a Company

question 17

True/False

A third-party logistics (3PL) firm is defined as a company that owns trucks and warehouses so as to offer integrated services.

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Definitions:

Credit

A form of financial arrangement where a borrower receives something of value now and agrees to repay the lender at a later date, typically with interest.

Accounts Receivable Period

Also known as the average collection period, it refers to the average number of days it takes a company to collect payments from its credit sales.

Collecting Receivables

Collecting receivables involves the process or steps taken by a business to ensure that payments are received from customers for goods or services provided on credit.

Cash Cycle

The period of time between a company's purchase of inventory and the receipt of cash from accounts receivable.