Which of the Following Statements Is False

question 6

Multiple Choice

Which of the following statements is false?

• A) In reality, product markets are rarely perfectly competitive, so firms can maximize their value by using their trade credit options effectively.
• B) Trade credit is, in essence, a loan from the selling firm to its customer.
• C) The accounts receivable balance represents the amount that a firm owes its suppliers for goods that it has received but for which it has not yet paid.
• D) Providing financing at below-market rates is an indirect way to lower prices for only certain customers.

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Definitions:

Outbound-Related Factors

Conditions or elements that impact the shipping and handling of goods from a manufacturer or distributor to the end customer.

Inbound-Related Factors

Elements that influence the receiving side of operations, such as supplier performance, quality of materials, and logistics efficiency in the supply chain.

Final Consumer

The final consumer is the end user of a product or service who does not intend to sell the product or service but instead uses it for personal, household, or family purposes.

Supplier's Supplier

Refers to the provider of goods or services to another supplier in the supply chain hierarchy, highlighting the multi-tiered nature of supply chains.