If one of your firm's customers is "stretching" its accounts payable, this may be a nuisance but it does not represent a real financial cost to your firm as long as the customer periodically pays off its entire balance. O True O False

The facts (1) that no explicit interest is paid on accruals and (2) that the firm can control the level of these accounts at will makes them an attractive source of funding to meet working capital needs. True False

Without considering the fact that the money deposited in the margin account earns interest, a hedger might take a wrong hedging position which turns it into a speculative one. True False

Payday loans are one of the most insidious business practices, and their customers seem to end up with a payday ball and chain around their neck that never seems to go away.  This is because the interest and fees associated with these loans are so high that many people get trapped into taking one after the other over and over again.  Rarely do payday loans end up being the short-term solution they claim.  On the business front, there are working capital loans.  Do you think that these are a good idea and a valid solution to help manage working capital, or do you think that these are the business equivalent of payday loans?