logo
menu
Sign up
  1. Topics
  2. Business
  3. Fundamentals of Financial Management Concise
  4. Quiz 15: Working Capital Management

If a Profitable Firm Finds That It Simply Must "Stretch

Question 57
True False

If a profitable firm finds that it simply must "stretch" its accounts payable,then this suggests that it is undercapitalized,i.e. ,that it needs more working capital to support its operations.

Related questions
Q 58
If one of your firm's customers is "stretching" its accounts payable,this may be a nuisance but it does not represent a real financial cost to your firm as long as the customer periodically pays off its entire balance.
Q 59
The prime rate charged by big money center banks at any one time is likely to vary greatly (for example,as much as 2 to 4 percentage points)across banks due to banks' ability to differentiate themselves and because different banks operate in different parts of the country.
Q 60
A revolving credit agreement is a formal line of credit.The firm must generally pay a fee on the unused balance of the committed funds to compensate the bank for the commitment to extend those funds.​
logo
QuizPlus
  • About
  • How it work
  • Pricing
Links
  • Privacy Policy
  • Terms And Conditions
  • Refund Policy
Contact Us
  • info@quizplus.com
© 2020-2021 Cozyplus FZ LLC. All rights reserved