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:

Norman Triplett

A psychologist known for conducting one of the earliest experiments in social psychology about the effects of competition on performance.

Racing Cyclists

Athletes who specialize in competitive cycling, often participating in races that test speed, endurance, and strategic skill on various terrains.

Rowing Machines

Exercise equipment that simulates the action of watercraft rowing for the purpose of exercise or training for rowing.

Max Ringelmann

A French agricultural engineer who discovered that individuals exert less effort on a task when they work in a group compared to when working alone, known as the Ringelmann effect.