When a business customer buys on credit from another business,the seller of the product will often offer an extended payment period for the product or service,but with an incentive to delay payment of the bill in an effort to earn a finance charge.

Question

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The seller typically offers an incentive for early payment, not for delaying payment, in the form of discounts to encourage prompt payment and improve cash flow, not to earn a finance charge.

When a Business Customer Buys on Credit from Another Business,the