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:

Arthur Conan Doyle

Arthur Conan Doyle was a British writer best known for creating the detective Sherlock Holmes.

Ship's Log Book

The official record book kept on board a ship, documenting its journey, operations, and events.

Parallel Structure

The use of components in sentences that are grammatically the same or similar in their construction, sound, meaning, or meter.

Sentence Variety

The use of different sentence structures to make writing more engaging and to better convey ideas.