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Credit period length in each of the following pairings

Question: Credit Period Length. In each of the following pairings, indicate which firm would probably have a longer credit period and explain your reasoning.

a. Firm A sells a miracle cure for baldness; Firm B sells toupees.

b. Firm A specializes in products for landlords; Firm B specializes in products for renters.

c. Firm A sells to customers with an inventory turnover of 10 times; Firm B sells to customers with an inventory turnover of 20 times.

d. Firm A sells fresh fruit; Firm B sells canned fruit.

e. Firm A sells and installs carpeting; Firm B sells rugs.

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Finance Basics: Credit period length in each of the following pairings

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