Trade Credit Is Created When

question 69

Multiple Choice

Trade credit is created when:

• A) customers return unacceptable goods.
• B) final consumers purchase goods on credit.
• C) companies purchase goods on credit.
• D) current assets exceed current liabilities.

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Definitions:

Henry Ford

American industrialist and founder of Ford Motor Company who revolutionized factory production with his assembly-line methods.

Market Orientation

A business philosophy where the focus is on identifying and meeting the needs and wants of customers through product innovation and customer satisfaction.

Natural Monopolies

A market structure where a single firm can provide a good or service to an entire market at a lower cost than if there were multiple firms due to economies of scale.

ROI

Return on Investment, a performance measure used to evaluate the efficiency or profitability of an investment.