Which of the Following Is Not True Concerning Considerations in Setting

question 60

Multiple Choice

Which of the following is not true concerning considerations in setting a credit policy?

• A)A firm that supplies a perishable product will tend to offer restrictive credit terms.
• B)A firm whose customers are in a high-risk business will tend to offer restrictive credit
• Terms.
• C)Lengthening the credit period effectively reduces the price paid by the customer.
• D)Small accounts, associated with firms that find it difficult to acquire a line of credit, tend to
• Receive longer credit periods.
• E)None of the above.

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Definitions:

Parliamentary Control

The mechanisms, processes, and practices that ensure the government is accountable and responsive to the legislature or parliament.

New England Puritans

Religious reformers in the 16th century who migrated from England to New England, seeking to "purify" the Church of England and practice their faith freely.

Witchcraft

The practice of magical skills, spells, and abilities, often within a historical, religious, spiritual, or mythological context.

Supernatural Powers

Abilities or phenomena that go beyond the natural world's laws, often featured in mythology, religion, and fiction.