Which of the Following Is NOT a Reason Why a Firm

question 106

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 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:

Logical Analysis

The process of examining a problem or situation using reasoning and critical thinking to draw conclusions.

Sound Conclusions

Well-reasoned and logical deductions or decisions based on a thorough analysis of data or information.

Strong Recommendations

Advisements given with conviction and based on solid evidence or experience, suggesting a high level of confidence in the proposed action.

Recommendations

Advice or suggestions given based on expertise or experience, often in a professional context.