Most business credit terms allow customers 30 to 60 days to pay invoices without any interest being

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Most business credit terms allow customers 30 to 60 days to pay invoices without any interest being charged. That means the customer is using the seller’s money for free for that time, which adds to the seller’s costs. Why do you think businesses offer those credit terms even though they are expensive? Which do you believe is more important to business customers—a discount for paying quickly or no interest charges for 30 to 60 days? Justify your answer.

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Business Finance

ISBN: 9780357532348

1st Edition

Authors: Les Dlabay, James L. Burrow

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