Answer Happy

Which of the following statements is CORRECT? If a firm holds too much inventory, stock-outs, the situation when a firm runs out of product, may occur, leading to lost sales. The lower the discount percentage offered in a trade credit, the greater the cost of forgoing the discount in the trade credit. Some firms ignore the payment due period in a trade credit and pay later, in a practice referred to as pushing the accounts payable. Under the Modigliani-Miller assumptions of perfect capital markets, the amounts of payables and receivables are irrelevant. None of the above is correct.