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:

Smart And Pleasant

Possessing intelligence and causing enjoyment or happiness; often describes someone who is clever and agreeable in nature.

Complying

The act of conforming, submitting, or adapting one's behavior to match with rules, requests, or demands.

Small Requests

A technique where simple, non-burdensome tasks or favors are asked to gradually encourage compliance or build rapport.

Larger Requests

A persuasion technique where a more significant demand or appeal is made, possibly as a part of a strategy to achieve a smaller request later.