When Managing Accounts Payable, a Good Strategy Would Be to ________

question 206

Multiple Choice

When managing accounts payable, a good strategy would be to ________.

• A) pay as early as possible creating better credit rating for a firm
• B) pay as slowly as possible without damaging a firm's credit rating
• C) pay big customers early to maintain good relations and small customers on a later date
• D) pay only when a firm has adequate funds to meet its liabilities

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Definitions:

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

Location Decision

The process of selecting a geographical site for a company's operations, facilities, or services.

Capital Flow

The movement of money for the purpose of investment, trade, or business production internationally or within a country.

Memphis

A city located in the southwestern part of Tennessee, USA, known for its rich cultural history, especially in music, and as the home of Elvis Presley's Graceland.