Optimal Credit Policy Is One in Which the

question 65

Multiple Choice

Optimal credit policy is one in which the

• A) increased cash flow from sales equals the carrying cost of accounts receivable.
• B) sales of a firm are maximized.
• C) increased profit from sales equals the costs of carrying and administering accounts receivable.
• D) customers pay their bills on time, without exception.
• E) costs of taking a trade discount equal its benefits.

Comprehend the role of environmental factors in cognitive and emotional control.

Learn about the influence of culture on territorial and personal space behaviors.

Understand the mechanisms and effects of learned helplessness and how it differs from sensory overload.

Identify methods for promoting environmental conservation and behavior change.

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Definitions:

Outlay

An amount of money spent on something, often as an investment or expenditure.

Cost of Capital

The rate of return that a company must pay on its investments to satisfy its investors or creditors.

Cash Flows

The movement of money into and out of a business, representing earnings and expenditures.

Internal Rate

Often referring to the Internal Rate of Return (IRR), it's the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.