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galben [10]
2 years ago
13

When a firm stretches accounts payable without hurting its credit rating, the cost of giving up a cash discount is ________.

Business
1 answer:
babymother [125]2 years ago
7 0

When a firm stretch accounts payable without hurting its credit rating, the cost of giving up a cash discount is<u> reduced.</u>

<u></u>

A credit rating is a measure of a person's or entity's ability to repay financial obligations based on income and past repayment history. Usually expressed in terms of creditworthiness, banks and lenders use creditworthiness as one factor in deciding whether to lend money.

Credit ratings help lenders determine the creditworthiness of borrowers. An individual's credit rating is determined by factors such as borrowing history, outstanding borrowings, and payment history.

Credit ratings are used by investors, intermediaries such as investment banks, bond issuers, and companies and corporations.

Disclaimer: Learn more about credit rating here brainly.com/question/13375913

#SPJ4

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