The Four Major Elements in a Firm's Credit Policy Are

question 129

True/False

The four major elements in a firm's credit policy are (1) credit standards, (2) discounts offered, (3) credit period, and (4) collection policy.

---

Definitions:

Discounted Price

A reduced price offered on goods or services, typically to stimulate sales or clear out inventory.

Antitrust Law

Legal regulations designed to promote competition and prevent monopolistic practices by prohibiting unfair business practices and mergers that significantly reduce competition.

Exempt

Status or conditions that provide immunity or exception from a general rule, such as certain incomes being exempt from tax.

Regulatory Bodies

Organizations or agencies established by a government to enforce specific laws, regulate sectors, and ensure compliance with legal standards.