If the Company Changes Its Credit Granting Policies and Begins

question 4

Multiple Choice

If the company changes its credit granting policies and begins granting credit to less creditworthy customers, which of the following statements is true regarding the likely effect on the receivables turnover ratio and the days to collect measure?

• A) The receivables turnover ratio will decrease and days to collect will increase.
• B) The receivables turnover ratio will increase and days to collect will increase.
• C) The receivables turnover ratio will decrease and days to collect will decrease.
• D) The receivables turnover ratio will not change and days to collect will decrease.

Understand the principles of comparative and absolute advantage in international trade.

Examine the role of government policies, including the Trade Adjustment Assistance Act, in addressing the impacts of globalization.

Analyze the effects of globalization on job markets and the practice of offshoring.

Apply supply and demand analysis to international trade scenarios.

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Definitions:

Inductive Arguments

Reasoning that moves from specific instances to a general conclusion, often used to infer probabilities.

Conditional Statements

Logical statements that have an "if-then" structure, indicating that if one condition is true, then a specific result follows.

Claims

Statements or assertions that something is the case, typically without providing evidence or proof.

Explanations

Statements or accounts that make something clear by describing it in detail.