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Not taking cash discounts is costly, and as a result, firms that do not take...

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Finance

Not taking cash discounts is costly, and as a result, firms that do not take them are usually those that are performing poorly and have inadequate cash balances.
a. True
b. False
The longer its customers normally hold inventory, the longer the credit period supplier firms normally offer. Still, suppliers have some flexibility in the credit terms they offer. If a supplier lengthens the credit period offered this will shorten the customer's cash conversion cycle but lengthen the supplier firm's own CCC.
a. True
b. False
Question
The longer its customers normally hold inventory, the longer the credit period supplier firms normally offer. Still, suppliers have some flexibility in the credit terms they offer. If a supplier lengthens the credit period offer this will shorten the customer's cash conversion cycle but lengthen the supplier firm's own CCC.
a. True
b. False
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