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.

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Definitions:

Technical/Human Orientation

A theoretical perspective emphasizing the balance between technological skills and human social skills in organizational contexts.

Time Orientation

refers to the way individuals or cultures perceive and value time, influencing priorities, punctuality, and planning.

Qualitative Methods

Investigative techniques that gather and examine qualitative data to grasp ideas, perceptions, or experiences.

Descriptiveness

The aspect of providing detailed information or an accurate depiction of events, processes, or characteristics.