Which of the Following Policies Is a Minimum Standard for Managing

question 88

Multiple Choice

Which of the following policies is a minimum standard for managing customer credit?

• A) Providing cash discounts to customers who delay payments
• B) Continuing credit sales to customers who become significantly late in paying
• C) Authorizing credit sales without any credit check to every individual customer
• D) Filing suits and liens against the assets of customers who default on payment

---

Definitions:

Ability-To-Pay

A concept in taxation that taxes should be levied according to an individual or entity’s ability to shoulder the tax burden.

Lump-Sum Tax

A tax that is the same for everyone, regardless of any actions people take.

Ability-To-Pay Principle

A taxation principle suggesting that taxes should be levied according to an individual's or entity's capability to bear the tax burden.

Tax Revenue

The income gained by governments through taxation.