Why do a firms regular credit terms typically conform to those of its industry?

Question:

Why do a firm’s regular credit terms typically conform to those of its industry?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Managerial Finance

ISBN: 978-0136119463

13th Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

See More Books

Question Posted: Mar 05, 2012 04:04 AM

See More Questions

Why do a firms regular credit terms typically con-form to its industrys standards? On what basis other than credit terms should the firm compete?
Why would a firm extend credit to its customers given that such an action would leng-then its cash conversion cycle ? What key cost trade-offs would be involved in this decision? What typically...
Why do MBA economics professors earn more than regular economics professors? Why do MBA accounting professors earn more than MBA economics professors?
1) Determine the pH of a 4.3*10^-4 M NaOH solution. 2) why would we say that a solution with a H+ concentration of 1.00*10^-7 M is said to be neutral if it contains acid, shouldn't be acidic?
Pierce Corp. has a December 31 year end. It received its property tax assessment of $36,000 for the calendar year on April 30. The property tax bill is payable on July 15. Prepare the journal entries...
Lab result: https://youtu.be/gYcLqlTLFz0 Lab result: https://youtu.be/Kb7HrI4saQ0 2. What was the purpose of the (-) plasmid on the TSA plate? B) What was the purpose of the (+) plasmid on the TSA...
The following data is available for an engine working on ideal Otto cycle Temperature at the beginning of compression $=50^{\circ} \mathrm{C}$. Temperature at the end of compressor \(=373^{\circ}...
Operating profits and losses for the seven operating segments of Foley Corporation are (in 000,000): Based only on the operating profit (loss) test, which industry segments arereportable? Penley...
1- What is the significance of these three matrices regarding their relevance for strategic planning fpr southwest airlines? 2- Describe the key information for each and how information from each...
What are the elements of the Wattpad platform? What drives cross-platform economic value? Assess the progress of artificial intelligence efforts to match readers and writers. How does Wattpad build a...
Why are the risks involved in international credit management more complex than those associated with purely domestic credit sales?
Why should a firm actively monitor the accounts receivable of its credit customers? How are the average collection period and an aging schedule used for credit monitoring?
Why are some countries today much poorer than other countries? Are todays poor countries destined to always be poorer than todays rich countries? If so, explain why. If not, explain how todays poor...
Two ice skaters stand facing each other at rest on a frozen pond. They push off against one another and the 48 kg skater acquires a speed of 0.74 m/s. If the other skater acquires a speed of 0.83...
The Doppler effect: a. is the basic explanation for the blue shift of light in our Universe. b. occurs when the pitch of a sound gets lower if the source is receding. c. can be applied only to sound...
In this problem, take atmospheric pressure to be 1.0 x 105 Pa, and the density of water to be 1000 kg/m. Use g = 10 N/kg. In 1690, Sir Edmund Halley (of comet fame) invented the diving bell. A...
A thermal power plant uses steam at 710 K to generate electricity and the waste steam leaves at 341 K. One of the plant engineers claims that 390 3 of electricity are generated for every 600 J of...
The average period of the Earth's orbit around the Sun may be taken to be 365.2 days. If the Earth were half it's actual distance away from the Sun, what would be the period of the Earth's orbit, in...
You have been offered a unique investment opportunity. If you invest $20,000 today, you will receive $1000 one year from now, $3000 two years from now, and $20,000 ten years from now. a. What is the...
Assume a simple Keynesian depression economy with a multiplier of 4 and an initial equilibrium income of $3,000. Saving and investment equal $400, and assume full employment income is $4,000. a. What...
In this section, does constant growth mean that each successive payment increases by the same dollar amount? If not, what does it mean?
Present value of an annuity Consider the following cases. a. Calculate the present value of the annuity assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in...
Present value of an annuity Consider the following cases. a. Calculate the present value of the annuity assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in...
Marian Kirk wishes to select the better of two 10-year annuities, C and D. Annuity C is an ordinary annuity of $2,500 per year for 10 years. Annuity D is an annuity due of $2,200 per year for 10...
After the company issues an initial public offering and they desire to offer additional shares, one option is the seasoned equity offering. What are the differences between a convertible bond and a...
4. A stock provides a dividend yield of 5.0% paid semi- annually. The spot price of the stock is currently $500, and the risk-free rate is 7.5% with continuous compounding for all maturities. 1. What...
1. A 1000 bond issued on January 10, 2021 is paying coupons at a nominal interest rate of 7% payable semiannually. The bond is redeemed at par and matures on January 10, 2031. The nominal yield rate...

Why do a firms regular credit terms typically conform to those of its industry?

Question:

Step by Step Answer:

A firms credit terms conform to those of its industry for ...View the full answer

Principles Of Managerial Finance

Students also viewed these Finance questions