The Greatest Advantage of Buying Component Parts from Independent Suppliers

question 84

True/False

The greatest advantage of buying component parts from independent suppliers is that the firm can maintain its flexibility.

---

Definitions:

Trade Credit

Debt arising from credit sales and recorded as an account receivable by the seller and as an account payable by the buyer.

Discounts

A reduction from the usual cost of something, often applied to prompt payment or to certain categories of customers.

Increase

A rise in value, quantity, or some other measure.

Trade Discount

A reduction from the list price given by a seller to a buyer, often based on the volume of the transaction or to incentivize early payment.