Why would a firm extend credit to its customers given that such an action would leng then its cash conversion cycle What key cost trade offs would be involved in this decision What typically dictates the actual credit terms the firm extends to its customers ...

A firm might extend credit in order to obtain higher sales The manager mus ...

Why would a firm extend credit to its customers given that such an action would leng-then its

Question:

Why would a firm extend credit to its customers given that such an action would leng-then its ? What key cost trade-offs would be involved in this decision? What typically dictates the actual credit terms the firm extends to its customers?
Cash Conversion Cycle
Cash conversion cycle measures the total time a business takes to convert its cash on hand to produce, pay its suppliers, sell to its customers and collect cash from its customers. The process starts with purchasing of raw materials from suppliers,...