Which of the Following Is Least Likely to Be Correct

question 24

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 favorable 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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Definitions:

Medical Insurance

A financial agreement where individuals or employers pay premiums in exchange for coverage of healthcare costs, reducing the burden of medical expenses.

Job Burnout

A state of physical, emotional, or mental exhaustion combined with doubts about one’s competence and the value of work.

Emotional Exhaustion

A state of feeling emotionally drained and depleted due to accumulated stress from personal or work life.

Depersonalization

A psychological experience of feeling detached from one's self or surroundings.