Criteria for Extending Credit to New Customers Usually Involve the Following

question 144

True/False

Criteria for extending credit to new customers usually involve the following issues:
(1)length of time in business
(2)adequate net worth
(3)an acceptable current ratio
(4)a "clean" credit record.

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Definitions:

Entry of New Firms

The process by which new companies enter an industry, often leading to increased competition and impacts on market prices and incumbent firms.

Oligopolistic Firms

Companies that operate in a market structure characterized by a small number of dominant firms, often leading to limited competition.

Price Cuts

Reductions in the selling price of goods or services, often used as a strategy to increase demand or compete more effectively.

Advertising

The action of calling attention to products, services, or ideas through paid announcements by an identified sponsor.