Some Suppliers Hesitate to Offer Trade Credit to Firms with a Poor

question 135

Multiple Choice

Some suppliers hesitate to offer trade credit to firms with a poor credit history. In these cases, the supplier may insist that the customer sign a(n)

• A) indenture agreement.
• B) promissory note.
• C) line of credit.
• D) factoring agreement.

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Definitions:

Efficient Level

The optimal point of production or operation where a firm or an economy can produce goods at the lowest cost and with the best allocation of resources.

Kennel Owner

An individual who owns or operates a facility where dogs are housed, cared for, and sometimes bred.

Earplugs

Small devices inserted into the ear canal to protect the ears from loud noises, water, foreign bodies, or excessive wind.

Headache Medicine

Medication specifically designed to relieve symptoms of headaches, including tension and migraine types.