Lancer Wholesale Company Wants to Improve Cash Flow

question 168

Multiple Choice

Lancer Wholesale Company wants to improve cash flow. Which of the following strategies would be most likely to help Lancer achieve this objective?

• A) Relaxing its credit policy for new customers
• B) Offering cash discounts to buyers who pay their accounts promptly
• C) Accepting IOUs from customers who buy in large quantities
• D) Offering extended payment plans to qualified buyers

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Definitions:

Information Processing

A cognitive approach that likens the mind to a computer, focusing on how people process, store, and retrieve information.

Compare

To examine two or more objects, ideas, or entities to identify similarities and differences between them.

Contrast Effects

The enhancement or reduction in perception and judgement of stimuli when compared to a recently encountered contrasting stimulus.

Absolute Thresholds

The minimum intensity of a stimulus that one can detect 50% of the time, varying between individuals and conditions.