The Longer Its Customers Normally Hold Inventory, the Longer the Credit

question 99

True/False

The longer its customers normally hold inventory, the longer the credit period supplier firms normally offer.Still, suppliers have some flexibility in the credit terms they offer.If a supplier lengthens the credit period offered, this will shorten the customer's cash conversion cycle but lengthen the supplier firm's own CCC.

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Definitions:

Split Personality

An outdated term, often incorrectly used to describe Dissociative Identity Disorder, which involves the presence of two or more distinct personality states.

Depersonalization

A mental state in which a person feels detached from their thoughts, feelings, body, or surroundings, often described as feeling like an outside observer of their life.

Derealization

A state of experiencing the outside world as strange, distant, or unreal, often associated with severe stress or mental health conditions.

Pathological

Relating to pathology, the study of diseases, or a condition that is caused by or evidences a disease or disorder.