Most Firms Want to Extend Their Payables as Long as They

question 138

True/False

Most firms want to extend their payables as long as they can, but they also want to maintain their relations with suppliers.Businesses, therefore, negotiate hard for favorable payment terms and then delay paying until just before the last agreed moment.

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Definitions:

Leeward Side

The side of an object or geographic formation that is sheltered from the prevailing wind.

Mountain Range

A series of connected mountains, typically aligned in a linear pattern, formed by various geological processes like tectonic plate movement.

Formation

The process or result of forming something or the structure and arrangement of something.

Omnivores

Organisms that obtain their energy and nutrients from a diet made up of both plant and animal substances.