High School

We appreciate your visit to A company that sells milk to Starbucks and allows Starbucks to pay for delivered milk in 60 days has no credit risk exposure since Starbucks. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!

A company that sells milk to Starbucks and allows Starbucks to pay for delivered milk in 60 days has no credit risk exposure since Starbucks is a profitable company. (True/False)

Answer :

False.

Although Starbucks is a profitable company, the company that sells milk to Starbucks and allows them to pay in 60 days still has credit risk exposure. Credit risk exposure refers to the potential loss that a company may face if the customer fails to pay its debts on time or defaults on payment altogether. Even though Starbucks is profitable, there is still a possibility that they may face financial difficulties or fail to make the payment within the agreed timeframe.

Hence, the company selling milk to Starbucks is exposed to credit risk regardless of Starbucks' profitability.

To know more about Starbucks visit:

https://brainly.com/question/32307211

#SPJ11

Thanks for taking the time to read A company that sells milk to Starbucks and allows Starbucks to pay for delivered milk in 60 days has no credit risk exposure since Starbucks. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!

Rewritten by : Barada