A Retailer Can Increase Its Accounts Payable to Net Sales

question 20

Multiple Choice

A retailer can increase its accounts payable to net sales ratio by _____.

• A)increasing its inventory turnover
• B)paying accounts payable early to receive cash discounts
• C)switching to vendors with net 45 versus net 30 terms
• D)increasing its initial markup

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Definitions:

Local Factory

A manufacturing facility situated within a specific locality or geographic area, contributing to the local economy.

Productivity

The efficiency with which inputs (such as labor and capital) are converted into outputs like goods and services.

Separating Equilibrium

A situation in game theory or economic models where differing types, strategies, or qualities of players or products lead to distinct outcomes, separating them into different equilibrium points.

Pooling Equilibrium

A situation in a market with incomplete information where different types of economic agents are treated indistinguishably due to a lack of distinguishing information.