Companies with Longer Payment Periods Are Usually Better Credit Risks

question 27

True/False

Companies with longer payment periods are usually better credit risks than those with shorter payment periods.

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Definitions:

Output

The quantity of goods or services produced in a given period by an individual, firm, or country.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, holding all other factors constant.

Marginal Product

The additional output gained from employing an extra unit of input in the production process.

Produce

To create, manufacture, or cultivate goods, especially agricultural products, for consumption or use.