Why Is It Necessary for a Business Firm to Establish

question 252

Multiple Choice

Why is it necessary for a business firm to establish a credit policy?

• A) A credit policy is necessary to determine how much money the business can borrow to purchase supplies.
• B) A credit policy is necessary to determine how dividends will be distributed to the shareholders.
• C) A credit policy is necessary to determine which suppliers the firm needs to pay.
• D) A credit policy is a means of accounting for the dollar value of inventory-in-process.
• E) A credit policy provides financial managers with expected dates of payment from buyers of the firm's products and services.

---

Definitions:

Eye Contact

The act of looking directly into another person's eyes, which can communicate various emotions or intent and is an important aspect of non-verbal communication.

Sit In Chair

The act of positioning oneself in a seated posture on a chair, commonly used to rest, work, or engage in activities at a table or desk.

Aphasia

A disorder resulting from damage to the parts of the brain that control language, leading to difficulties in speaking, understanding, reading, and writing.

Speech Therapist

A healthcare professional specialized in evaluating and treating communication disorders and swallowing problems.