One of the requirements to be able to offer ________ credit is to make certain that the firms' cash position is ________.
A)installment; positive
B)installment; strong enough to support the additional pressure
C)trade; positive
D)trade; strong enough to support the additional pressure

Question

Quizplus · Accepted Answer

The question mentions the requirement for offering trade credit, which means extending credit to customers on the basis of their promise to pay later. In such a scenario, it is important to assess the cash position of the firm to determine if it can support the additional pressure of delayed payments. Therefore, the best choice is D - trade credit, strong enough to support the additional pressure.

One of the Requirements to Be Able to Offer ________