If Easing a Firm's Credit Policy Lengthens the Collection Period

question 105

Multiple Choice

If easing a firm's credit policy lengthens the collection period and results in a worsening of the aging schedule then why do firms take such actions?

• A) It normally stimulates sales.
• B) To meet competitive pressures.
• C) To increase the firm's deferral period for payables.
• D) All of the above.
• E) Both a and b above.

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Definitions:

Product Class

A broad category of products that serve a similar function or are used in a similar way.

Competitive Institutional

Involves the comparison and contrast of the strategic adaptations and structures of businesses within the same industry or sector.

Visit California

is an organization and marketing campaign aimed at promoting tourism to the state of California.

Lifestyle Attributes

Characteristics defining the way a person or group lives, including habits, attitudes, tastes, moral standards, and economic level, which together influence consumer behavior.