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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Definitions:

Hypnosis

A trance-like state of focused attention, reduced peripheral awareness, and an enhanced capacity for response to suggestion.

Trancelike State

A semi-conscious state in which a person may be highly responsive to suggestion or direction, often associated with hypnosis.

Coma

A deep state of prolonged unconsciousness, where a person cannot be awakened, fails to respond normally to pain, light, or sound, lacks a normal wake-sleep cycle, and does not initiate voluntary actions.

Frequently Used Drug

A substance that is commonly consumed or administered to achieve a desired psychoactive effect.