Question: A supplier is deciding whether to offer 9 0 - day credit terms to a potential client, Delta Supplies Ltd . Which of the following

A supplier is deciding whether to offer 90-day credit terms to a potential client, Delta Supplies Ltd. Which of the following would not be a valid consideration in assessing credit risk?
Question 11Answer
a.
It has a high inventory turnover, indicating operational efficiency
b.
Its debt levels have been rising steadily over recent years
c.
The company is profitable, but its cash flow is weakening
d.
It has a pattern of delayed payments to existing creditors
e.
All of the options contain valid considerations.

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