The Set of Rules That Determines Whether or Not to Extend

question 96

Multiple Choice

The set of rules that determines whether or not to extend credit is known as:

• A)Credit analysis
• B)Credit policy
• C)Multiple discriminate analysis
• D)The terms of trade credit

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Definitions:

Socialist

An advocate or supporter of socialism, a political and economic theory advocating for the ownership and control of the means of production by the community as a whole.

Price Mechanism

The process by which prices rise or fall as a result of changes in supply and demand, guiding the allocation of resources in a market economy.

Competing Firms

Businesses that operate in the same market, offering similar products or services, and vie for the same consumer base.

External Benefit

A benefit gained by individuals or society that is not reflected in market transactions, often associated with positive externalities.