Should a Firm Ideally Have a Higher or a Lower

question 34

Essay

Should a firm ideally have a higher or a lower ratio of payables turnover?

---

Definitions:

Trade Discount

A reduction in the listed price of goods or services, offered by sellers to buyers in the business-to-business market.

Real Estate Commission

The fee, typically a percentage of the sale price, paid to a real estate agent or broker for their services in selling a property.

Trade Discount

A reduction in the list price granted by a seller to a buyer, often based on the volume of goods purchased or to maintain a long-term sales relationship.

Trade Discount

A reduction from the list price granted by a seller to a buyer based on the volume or quantity purchased or to stimulate sales.