Suppose a Firm Changes Its Credit Policy from 2/10 Net

question 65

True/False

Suppose a firm changes its credit policy from 2/10 net 30 to 3/10 net 30.The change is meant to meet competition, so no increase in sales is expected.The average accounts receivable balance will probably decline as a result of this change.

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Definitions:

Brand Development

The process of creating and strengthening a brand's identity, market position, and connection with audiences.

Message Delivery

The process of successfully transmitting a message from sender to receiver through various channels and ensuring it is received as intended.

Sustainable Business

A company that operates in a manner that minimizes negative environmental impact and encourages positive social contributions.

Brand Trust

The confidence and reliance customers place in a brand, influenced by its consistency, quality, and ethical conduct, essential for building customer loyalty.