Which of the Following Is Not True Concerning Considerations in Setting

question 58

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 these.

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Definitions:

Fourth Stage

Referring to the fourth phase in various developmental theories, it often implies a specific period focusing on a particular challenge or achievement.

Crisis Experience

A critical event or period of significant stress in an individual's life, often resulting in profound personal growth or change.

Favorable Outcome

A result or end that is considered to be beneficial, positive, or desirable, often used in the context of therapy or intervention studies.

Archetypes

Universal, inherited models of people, behaviors, or personalities that play a role in influencing human behavior, as proposed by Carl Jung.