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Suppose Affiliate a Sells Goods Worth $1 Million Monthly to Affiliate

Question 23

Multiple Choice

Suppose affiliate A sells goods worth $1 million monthly to affiliate B on 30 day credit terms.A switch in credit terms to 120 days will involve a one-time shift in cash of


A) $3 million from A to B
B) $3 million from B to A
C) $4 million from A to B
D) $4 million from B to A

Correct Answer:

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