If a Firm Relaxes Its Credit Standards, the Volume of Accounts

question 273

True/False

If a firm relaxes its credit standards, the volume of accounts receivable increases and so does the firm's carrying cost.

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Definitions:

Employers

Entities that hire and compensate individuals for their work and services.

Motion Study

A business efficiency technique that analyzes the motions involved in performing a task to design more efficient ways of working, thereby improving productivity.

Frank and Lillian Gilbreth

Pioneers in the field of industrial engineering, known for their studies of time and motion to improve workplace efficiency.

Scientific Management

A management theory developed by Frederick W. Taylor advocating for the optimization of work through scientific methods to increase productivity.