Which of the Following Is NOT a Reason Why a Firm

question 36

Multiple Choice

Which of the following is NOT a reason why a firm may typically choose not to stretch its accounts payable?

• A) Delaying payment can increase the effective cost of credit in some circumstances.
• B) The supplier may demand COD or CBD in the future.
• C) The supplier may choose to discontinue business with delinquent customers.
• D) The firm's credit rating may be damaged.

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Definitions:

Recessions

Economic periods of decline characterized by falling GDP and increasing unemployment, often leading to reduced consumer spending and investment.

Recession

A period of temporary economic decline during which trade and industrial activities are reduced, often identified by a fall in GDP in two successive quarters.

1942

A year during World War II marked by significant global conflict and historical events.

1950

A historical year during the mid-20th century characterized by post-World War II recovery, the beginning of the Cold War, and significant cultural and technological changes.