Which of the Following Is NOT a Potential Cost of Granting

question 20

Multiple Choice

Which of the following is NOT a potential cost of granting trade credit?

• A)Delayed receipt of cash from sales
• B)Lost cash due to customers taking an offered discount for earlier payment
• C)Lost receipts due to inability of customers to pay agreed to credit terms
• D)Increased sales

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Definitions:

Catch Up

The process through which countries or businesses lagging behind in technology, productivity, or economic development attempt to close the gap with leaders.

Zika Virus

A mosquito-borne virus that can cause birth defects and other neurological conditions in infants born to infected mothers.

Free Trade

The absence of tariffs, quotas, and other regulatory barriers to trade between countries, allowing for the unrestricted exchange of goods and services.

Production

The process of creating goods or services by combining various inputs like labor, capital, and natural resources.