Although Sound Cash Management Principles Call for a Business Owner

question 52

True/False

Although sound cash management principles call for a business owner to keep her cash as long as possible, slowing accounts payable too drastically can severely damage a company's credit rating.

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Definitions:

Bookstore

A retail outlet specializing in the sale of books, often offering a selection of related goods such as magazines, music, or stationery.

Diploma Covers

Protective and decorative holders for diplomas or certificates, often used during graduation ceremonies or as a display method.

Optimal Order

An optimal order refers to the most efficient, cost-effective quantity of items to purchase or produce that minimizes total costs including ordering, holding, and shortage costs.

Black Market

An illegal trading environment where goods or services are exchanged outside of authorized channels.