Cash Sales Shorten the Operating Cycle for a Merchandiser; Credit

question 60

True/False

Cash sales shorten the operating cycle for a merchandiser; credit sales lengthen operating cycles.

---

Definitions:

Transitive Preferences

A principle in which if an individual prefers option A over B, and B over C, then they also prefer A over C.

Preferred

Indicating a greater liking for one alternative over another or others.

Marginal Rate

The rate at which a change is made from one level to another, often used in the context of taxes or interest rates.

Indifference Curve

A graph representing combinations of goods or services among which a consumer is indifferent.