The Three Primary Policy Variables to Consider When Extending Credit

question 77

Multiple Choice

The three primary policy variables to consider when extending credit include all of the following except:

• A) credit standards.
• B) the level of interest rates.
• C) the terms of trade.
• D) collection policy.

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Definitions:

Theory X

A management theory suggesting that employees are naturally lazy and will avoid work if they can, implying the need for strict supervision.

Irrational Feelings

Emotions or sentiments that are not based on reason, logic, or actual experience, often leading to unpredictable or unreasonable reactions.

Achievement Drive

The inner motivation or desire of an individual to accomplish specific goals and excel in tasks.

High Need

A critical or urgent requirement for something that is essential or very important for an individual or entity.