If You Delay Paying Your Suppliers by an Additional Ten

question 42

Multiple Choice

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

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

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Definitions:

Secondary Sexual Characteristics

Physical features that distinguish the two sexes of a species but are not directly involved in reproduction, such as breast development in females and facial hair in males.

Testosterone

A primary male sex hormone responsible for the development of male secondary sexual characteristics.

Corpus Luteum

A temporary endocrine structure in female ovaries that produces progesterone to regulate the menstrual cycle and early pregnancy.

LH

Luteinizing Hormone, a hormone that triggers ovulation in females and testosterone production in males.