Which of the Following Would Be Most Responsible for a Company's

question 96

Multiple Choice

Which of the following would be most responsible for a company's average collection period being higher than the industry average?

• A)If a company's growth in sales is greater than the growth of sales in the industry.
• B)Being more aggressive in collecting its accounts receivable than its competitors.
• C)Having credit policy standards that are more restrictive than its competitors.
• D)Being more lenient in extending credit to its customers than its competitors.
• E)None of the above.

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Definitions:

Project Sabotage

The act of deliberately destroying or hindering a project's success through mismanagement, obstruction, or intentional errors.

Non-participative Management

A management style where decision-making is centralized with little to no input from subordinate employees, limiting their participation in organizational processes.

Performance Rewards

A system or mechanism designed to provide compensation, recognition, or benefits to employees based on their job performance.

Fixed Costs

Expenses that do not change in proportion to the level of goods or services produced by a business.