If a Firm Is Involved in Every Stage of the Value

question 156

True/False

If a firm is involved in every stage of the value chain, it is highly integrated.

---

Definitions:

Contra-Revenue

Accounts on the income statement that are deducted from gross revenue to arrive at net revenue, including sales returns, allowances, and discounts.

Discount Period

The timeframe during which a payment can be made at a reduced price or with a deduction from the full invoice amount.

Sales Discounts

A reduction in the sale price offered by a seller to a buyer for prompt payment or within a specific time period.

Accounts Receivable

Customers' financial commitments to a firm for goods or services taken, pending reimbursement.