Firms Pay a Low Interest Rate on Spontaneous Liabilities So

question 38

True/False

Firms pay a low interest rate on spontaneous liabilities so these funds are its cheapest source of capital.Consequently, the firm should make arrangements with its suppliers to use as much of this credit as possible.

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Definitions:

Warehouse Workers

Individuals employed in a warehouse to handle tasks such as stocking, order picking, and packing, ensuring the smooth flow of goods.

Customer Information

Data and insights related to customers, including demographics, purchase history, behavior patterns, and preferences, used by businesses to tailor products, services, and marketing efforts.

U.S. Government

The federal government of the United States, comprising three branches: legislative, executive, and judicial.

Order Cycle

The duration or process from the initiation of an order to the delivery of the product or service to the customer.