Which of the Following Is NOT an Advantage of Trade

question 94

Multiple Choice

Which of the following is NOT an advantage of trade credit versus a standard loan?

• A) Trade credit reduces a firm's collection float.
• B) If the buyer defaults, the supplier may be able to seize the inventory as collateral.
• C) The supplier may have more information about the credit quality of the customer than a bank.
• D) Providing financing at below-market rates is an indirect way to lower prices for only certain customers.

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Definitions:

Relay Contact

A relay contact is a switch operated by an electromagnet in a relay, used to open or close circuits electromechanically or electronically.

Control Relay Contacts

Components in a relay used to open or close an electrical circuit, thereby controlling the flow of electricity based on a control signal.

Contactors

Electrically controlled switches used for switching an electrical power circuit, similar to a relay but with higher current ratings.

Solid-state Proximity Sensor

A sensor that detects the presence of an object without physical contact, using solid-state electronics for high reliability and durability.