Which of the Following Is NOT an Advantage of Trade

question 58

Multiple Choice

Which of the following is NOT an advantage of trade credit?

• A) The amount of extended credit expands and contracts with the needs of the firm.
• B) The cost of forgoing the discount is less than the prime rate.
• C) Generally no formal agreements are involved in the extension of trade credit.
• D) Trade credit is very flexible.

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Definitions:

Duration Aspect

A term relating to the time length during which an event, policy, or condition lasts or is expected to last, often used in planning and analysis.

Aesthetic Aspect

The branch of philosophy concerned with the nature and appreciation of art, beauty, and good taste.

Pluralism

A situation or framework where multiple states, groups, principles, or sources of power exist together.

Structural Integration

A strategy or process aimed at organizing the components of an organization or system to make it more coherent and functional.