Once a Small Business Has Established a Firm Written Credit

question 13

Multiple Choice

Once a small business has established a firm written credit policy and has clearly communicated it, the next step in building an effective credit policy is to ________.

• A)send invoices promptly
• B)determine what percentage of sales are being written off as bad debt
• C)create a simple credit application
• D)create a "tracking file" of events

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Definitions:

Assignee

A person or entity to whom a contract or legal right is transferred.

Statute of Frauds

A legal concept that requires certain types of contracts to be executed in writing and signed by all parties to be legally enforceable.

Fraudulent Contracts

Agreements made with the intent to deceive or defraud others, lacking honesty and legality.

Federal Level

Pertaining to the national government of a country, as opposed to state or local levels.