Question

First, spend a couple of sentences summarizing the Concepts in Action video you watched this week. Then, answer the following. In the Concepts in Action video you watched this week, the speaker mentioned that for a small business, having payment terms is like using "free money" for a while. What do you think this means? And in your personal financial life, can you think of a situation where you also have access to using free money for a little while every month?

Answer 1

Answer:

The essence of the particular question is demonstrated in the following subsection on the interpretation.

Explanation:

The free stuff towards smaller businesses applies to the allowance which isn't charged for a certain duration of time by either the small businessman. Small businesses, in the meantime, may reinvest the money with some other professional reasons, such as capital expenditures, to operated everyday duties.

For example:

• A small scale manufacturing business buys raw materials and components but hasn't charged meaning it buys the building resources on collateral which is considered easy cash the business has unlimited suppliers worth value for such a brief amount of time.
• Throughout my private situation, I could high inventory turnover such as when I take loans through my relative to buy something, and afterward return next months or defined period. An even more predicament where I have been to the consumption shops of my friend as well as buy the products and therefore pay a few other percentages, as well as the entire balance, is kept in his registration appears to mean financing.