Poor Payment Practices Can: (I)damage Cash Flow (Ii)damage Supplier Relationships

question 35

Multiple Choice

Poor payment practices can: (i) damage cash flow (ii) damage supplier relationships (iii) lead to fraud (iv) increase the chance of collusion.

• A)(i)(ii)only
• B)(i)(ii)(iv)only
• C)(i)(ii)(iii)only
• D)(i)(ii)(iii)(iv)

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Definitions:

Mortgage Bonds

Bonds secured by a mortgage on one or more assets, providing bondholders a claim on those assets in case of default.

Good Faith

Acting with honest intention or belief without intending to deceive.

Credit

Refers to the provision of resources (such as money) by one party to another party with the understanding that the resources will be repaid, often with interest, at a future date.

Issuance Price

The price at which a company's securities are offered to the public for sale for the first time.