The fact that Carlton Company allowed the company in Taiwan a window of 90 days to pay for the parts is an example of Time draft.
What is a Time draft?
A Time draft refers to when a company explicitly specifies the period that it expects payment for any goods or services that it sells. This allows them to be able to properly predict cashflows to help the company better organize itself.
Carlton Company Inc. specified that the company in Taiwan should pay for the elevator component parts in 90 days. This means that Carlton Company Inc. used a time draft.
Find out more on Time drafts at https://brainly.com/question/16342685
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