a firm's suppliers stop offering discounts, then its use of trade credit is more likely to increase than to decrease, other things held constant.

Question

Quizplus · Accepted Answer

If a firm's suppliers stop offering discounts, the firm may have less cash available for immediate payment. In this situation, the firm may increase its use of trade credit, which allows the firm to delay payment to its suppliers.

A Firm's Suppliers Stop Offering Discounts, Then Its Use of Trade