Suppose a Firm Changes Its Credit Policy from 2/10 Net

question 85

True/False

Suppose a firm changes its credit policy from 2/10 net 30 to 3/10 net 30.The change is meant to meet competition, so no increase in sales is expected.The average accounts receivable balance will probably decline as a result of this change.

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Definitions:

Self-Actualization

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.

Abraham Maslow

A psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Carl Rogers

An influential American psychologist who founded the humanistic approach to psychology, emphasizing the importance of free will, self-efficacy, and psychological health.

Fully Functioning

Refers to an individual who is living their life to its fullest potential, often associated with Carl Rogers' conception of self-actualization.