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CTP · Question #747
CTP Question #747: Real Exam Question with Answer & Explanation
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Question
- (Topic 8) ABC Company offers trade terms of 2/10 NET 30. For several reasons, ABC has decided to eliminate the requirement for a letter of credit from one of its customers. If ABC puts the customer on open book credit, what is the MOST LIKELY outcome?
Options
- AABC's credit rating will suffer.
- BThe customer's working capital has deteriorated.
- CABC's working capital is unchanged.
- DThe customer's cost of borrowing will increase.
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