Question

What do you understand by the concept “the business cycle”

Answer 1

In my opinion,it is reduced inventory,reduced inventory risk and management costs.Finished goods inventory held by businesses,to the additional management fees,expenses such as storage and insurance costs; the contrary,holders of accounts receivable business,you do not need the above-mentioned expenses.Therefore,when the finished goods inventory business more generally can be a more favorable credit terms to credit,the inventory into accounts receivable to reduce finished goods inventory,conservation-related expenses