If Creditors' Payment Terms Are 60 Days,financing Period Is 20

question 30

Multiple Choice

If creditors' payment terms are 60 days,financing period is 20 days,and it takes 30 days to collect the amount from customers.What time does it take to sell the inventory?

• A)60 days.
• B)20 days.
• C)30 days.
• D)50 days.

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Definitions:

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to another.

Market Failures

Situations in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Government Intervention

Actions taken by a government to influence or regulate various activities within its economy.

Market Signals

Indicators or information that guide economic decisions by conveying important data about the conditions or trends within a market.