Which Two of the Following Are the Key Considerations for a Seller

question 43

Multiple Choice

Which two of the following are the key considerations for a seller who is establishing the length of the credit period being offered to a customer?
I.seller's operating cycle
II.customer's operating cycle
III.seller's inventory period
IV.customer's inventory period

• A)I and II
• B)II and III
• C)III and IV
• D)II and IV
• E)I and IV

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Definitions:

Internal

Pertaining to activities, operations, or factors that occur or exist within an organization or entity.

Full Capacity

The maximum level of output that a company can produce under normal conditions over a given time period.

EFN

Expected Funds Needed, an estimation of the additional financing a company will require in the future based on its projected growth and existing financial structure.