If a Firm's Credit Period Is Increased, the Sales Volume

question 319

Multiple Choice

If a firm's credit period is increased, the sales volume can be expected to ________, the investment in accounts receivable can be expected to ________, and the bad debt expenses can be expected to ________.

• A) increase; decrease; decrease
• B) increase; increase; decrease
• C) increase; increase; increase
• D) decrease; decrease; decrease

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Definitions:

Venture

A business endeavor involving risk, typically with the expectation of future financial gain.

Viable

Capable of working successfully or feasible; in business, it often refers to a concept or idea that has the potential for success.

Business Model Canvas

A strategic management template used for developing new business models or documenting existing ones, visually outlining value propositions, customer segments, and other key components.

Business Brief

A concise summary of the key points of a business plan or project.