Which One of the Following Statements Is False as It

question 46

Multiple Choice

Which one of the following statements is false as it relates to considerations firms use when establishing 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)Larger accounts tend to receive more favorable credit terms.

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Definitions:

Expected Frequency

The predicted count of occurrences of a particular event or trait in a population based on probability data or genetic models.

Allele

A variant form of a gene at a particular locus on a chromosome, which can result in different phenotypic traits.

Locus

A specific, fixed position on a chromosome where a particular gene or genetic marker is located.

Segregating Independently

A principle of genetics where different genes independently separate from one another when reproductive cells develop.