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.

---

Definitions:

Corporate Stress

The physical and emotional strain caused by the pressures and demands of the workplace.

Organizations

Groups of individuals structured in a systematic way to achieve a set of goals or undertake specific tasks, such as businesses, government bodies, and charities.

Christina Maslach

A pioneering psychologist known for her research on occupational burnout and the development of the Maslach Burnout Inventory.

Employee Happiness

Refers to the level of satisfaction and positive emotions an employee experiences in their job.