_______ Occurs When a Firm Is Shifting Part of Its

question 99

Multiple Choice

_______ occurs when a firm is shifting part of its production to another country.

• A) Exporting
• B) Importing
• C) Outsourcing
• D) All of the above are correct.

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Definitions:

Credit Policy

A credit policy is a set of guidelines that a company follows to determine credit limits, payment terms, and how to manage delinquent accounts for its customers.

Terms of Sale

The conditions under which a sale is made primarily with respect to payment. Terms include a date on which payment is due and often specify a prompt payment discount that may be taken if payment is made within a specified time.

Lock Box Systems

A service provided by banks to companies for the quick collection of payments from customers by directing those payments to a special post office box.

Float Management

The practice of managing the time difference between issuing and clearing checks to optimize the available cash flow.