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:

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts, feelings, and motives to another person.

Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, effectively ignoring external truths.

Extraversion

A personality trait characterized by outgoingness, high levels of social engagement, and a high level of energy and enthusiasm.

Introversion

How shy and reserved a person is.