Under the Terms of Trade Found in Most Industries, the Costly

Multiple Choice

Under the terms of trade found in most industries, the costly component of trade credit

A) is relatively cheap, thus financially strong firms forego the cash discount.
B) is relatively expensive, thus financially strong firms will take the cash discount.
C) is relatively expensive, thus financially strong firms forego the cash discount.
D) is relatively cheap, thus financially strong firms will take the cash discount.
E) is relatively cheap, thus most financially strong firms don't consider the terms of trade.