If You Delay Paying Your Suppliers by an Additional Ten

question 114

Multiple Choice

If you delay paying your suppliers by an additional ten days, then:

• A)your payables turnover rate will increase.
• B)you will require less bank financing of your operations.
• C)the cash cycle will increase by ten days.
• D)your operating cycle will lengthen by ten days.
• E)your stock-out costs will rise.

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Definitions:

Resource Endowments

The natural resources, capital, and human skills that a country or region has available for economic production.

World Bank

An international financial institution that offers loans, grants, and expert advice to developing countries for economic development projects.

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people.

Infrastructure

Fundamental physical and organizational structures needed for the operation of a society or enterprise, such as roads, utilities, and communication systems.