Which of the following is least likely to be correct for a firm that repeatedly stretches its payables?
A) the cost of forgone discounts may exceed the cost of bank credit
B) the firm may receive more favourable status from suppliers due to its volume of purchases
C) the firm may be labeled as a credit risk
D) the firm may reduce its explicit short-term interest expense
Answer: B) the firm may receive more favourable status from suppliers due to its volume of purchases
Business
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