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That payables period is described as the element that probably cannot be optimised without:
AVerifying credit reports
BVoiding credit cards
CViolating credit terms
DValuing credit ratings
Answer & Solution
Correct answer: C. Violating credit terms
1. Delay conserves cash.
2. But the agreed terms bind the firm.
3. It cannot be stretched without violating credit terms.
_Source: OpenStax Principles of Finance 2e, Chapter 19, The Importance of Working Capital._
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