A small business must carefully assess its own cash position before offering trade credit to its customers.

Question

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A small business must assess its own cash position before offering trade credit to its customers because offering trade credit involves extending payment terms to customers, which can affect a business's cash flow and liquidity. Therefore, it is important to have a clear understanding of the business's cash position and ability to manage its outstanding accounts receivable before offering trade credit.

A Small Business Must Carefully Assess Its Own Cash Position