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:

Antique Objects

Items of considerable age, often more than 100 years old, valued because of their historical significance, craftsmanship, or rarity.

Demand Curve

The demand curve is a graphical representation showing the relationship between the price of a product or service and the quantity demanded by consumers.

Quantity Demanded

The volume of a commodity or service that people are ready and capable of acquiring at a given price point.

Economists

Professionals who study, develop, and apply theories and concepts in economics to understand how individuals, businesses, and societies allocate resources.