Which of the Following Statements Correctly Reflect the Effects of Granting

question 54

Multiple Choice

Which of the following statements correctly reflect the effects of granting credit to customers?
I.Total revenues may increase if both the quantity sold and the price per unit increase when credit is granted.
II.A firm's cash cycle generally increases if credit is granted,all else equal.
III.Both the cost of default and the cost of discounts must be considered before granting credit.
IV.A firm may have to increase its long-term borrowing if it decides to grant credit to its customers.

• A)I, II, and III only
• B)II, III, and IV only
• C)I, III, and IV only
• D)I, II, and IV only
• E)I, II, III, and IV

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Definitions:

Network

A collection of interconnected individuals or organizations that exchange information, contacts, and experience for professional or social benefit.

Career Advancement

The process of moving up in rank or position within a company or field, often involving gaining additional responsibilities, expertise, and financial benefits.

Vitality

The state of being strong, active, and full of energy; often used to describe both physical and mental liveliness.

Networking

Networking is the process of building, maintaining, and utilizing relationships for professional or social advantages.