The Wise Small Business Owner Should Strive to Stretch Out

question 15

True/False

The wise small business owner should strive to stretch out his/her payables as long as possible without damaging the company's credit rating.

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Definitions:

Quarters

In financial and business terms, one of the four three-month periods into which the fiscal year is divided for reporting and forecasting purposes.

Marginal Rate

The rate at which something changes with each additional unit, such as the marginal tax rate, which is the rate applied to each additional dollar of income.

Substitution

The economic principle where consumers replace more expensive items with less costly alternatives.

Indifference Curve

A graphical representation of different combinations of two goods or services among which a consumer is indifferent, showing preferences of consumption.