Which One of the Following Strategies Would Continue to Be

question 3

Multiple Choice

Which one of the following strategies would continue to be effective if a cash-strapped firm determines that the effective interest rate charged on trade credit is lower than the bank's interest rate?

• A) Take the discount but pay after the discount period.
• B) Borrow from the bank and take the discount.
• C) Ignore the discount, pay at the end of the period.
• D)Take the discount and hope for longer payment float.

---

Definitions:

Hearing

The sensory process of receiving and perceiving sounds.

Words

Basic units of language or speech that convey meaning and are used to express thoughts or communicate.

Parasympathetic

The part of the autonomic nervous system responsible for relaxation and conservation of energy.

Sympathetic

Part of the autonomic nervous system that prepares the body for action in challenging or threatening situations.