A growing firm that delays payments at the end of each period reports larger cash flow from operations each period than if it had not delayed making the cash payments at the end of each period. Which of the following is true?
a. The firm is, in effect, obtaining short-term financing from its suppliers.
b. Absent contracts or other agreements that preclude delayed payments, this business practice is legal.
c. Sufficiently delayed payments might harm a firm's reputation.
d. Sufficiently delayed payments might harm a firm's credit rating.
e. All of the above are true.
E
You might also like to view...
The letters in "S.W.O.T." analysis are an abbreviation for the first letters of the words "strengths, weaknesses, opportunities, and threats."
Answer the following statement true (T) or false (F)
In _______, based upon knowledge of their own costs, supplier managers add some percentage onto those costs to arrive at the market offering price
a. cost-plus pricing b. competition-based pricing c. value-based pricing d. skimming pricing
How is market segmentation useful to marketers?
What will be an ideal response?
Gould Enterprises sells computer disks for $3.16 per disk. Unit variable cost is $0.06. The breakeven point in units is 3,600, and expected sales in units are 4,300. What is the margin of safety in dollars?
A) $2,170 B) $2,212 C) $42 D) $11,376