The Effect of a Change in a Firm's Credit Terms

question 45

Multiple Choice

The effect of a change in a firm's credit terms from "net 30" to "2/10, net 30" on its customers' balance sheets is likely to be ____.

• A) decreased accounts receivable
• B) increased accounts receivable
• C) decreased accounts payable
• D) increased accounts payable

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Definitions:

Directive Style

A leadership approach characterized by giving clear, explicit instructions and closely supervising tasks, with a focus on task achievement and compliance.

Path-Goal Theory

A leadership theory that suggests a leader's behavior is motivated by the desire to guide their followers on a path to achieve personal and organizational goals.

Leadership

The action of leading a group of people or an organization, often involving making decisions and setting directions.

Challenging Obstacles

Difficulties or barriers that require effort, skill, or strategy to overcome.