Which of the Following Is Not True Concerning Considerations in Setting

question 12

Multiple Choice

Which of the following is not true concerning considerations in setting 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.

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Definitions:

Public Concern

Issues that generate a significant level of interest, worry, or debate among the general public, often influencing social attitudes, policy making, and media coverage.

Sensory Adaptation

A change over time in the responsiveness of the sensory system to a constant stimulus, often leading to a decrease in sensitivity to that stimulus.

Prolonged Stimulation

Continuous or extended exposure to a stimulus over a considerable period of time.

Neurotransmitter

Chemical messengers that transmit signals across a chemical synapse, from one neuron (nerve cell) to another 'target' neuron, muscle cell, or gland cell.