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:

Official Government Definition

A formal and authoritative explanation or description of a term or policy provided by a governmental body.

Biological Needs

Fundamental requirements that sustain the life of an organism, such as food, water, and shelter.

Equality Of Income

A state in which income is distributed equally among individuals or groups in society.

Incentive To Produce

Factors or motivations that encourage firms or individuals to engage in production, often driven by the potential for profit or market demand.