Accepting ________ ties a firm to the supplier and usually stops the firm from shopping around for a lower price.

Question

Quizplus · Accepted Answer

Supplier credit is a form of financing where the supplier extends credit to the buyer (firm) for the purchase of goods or services. Accepting supplier credit ties the firm to the supplier and often includes terms and conditions that prevent the firm from shopping around for a lower price, as they are obligated to purchase from the supplier who provided the credit. Non-equity credit and funding grants are not relevant to this scenario, and equity funding does not necessarily tie a firm to a specific supplier.

Accepting ________ Ties a Firm to the Supplier and Usually