A Firm Should Choose to Borrow Using Accounts Payable Only

question 93

True/False

A firm should choose to borrow using accounts payable only if trade credit is the cheapest source of funding.

---

Definitions:

mRNA

Messenger RNA (mRNA) is a type of RNA that carries genetic information from DNA to the ribosome, where it directs the synthesis of proteins.

Deoxyribose

Pentose sugar lacking a hydroxyl (—OH) group on carbon-2′; a constituent of DNA.

Hydroxyl Group

A functional group consisting of an oxygen atom bonded to a hydrogen atom (-OH), which is found in alcohols and many other organic molecules.

Ribose

The 5-carbon sugar present in RNA and in important nucleoside triphosphates such as ATP.