Once a Small Business Has Established a Firm Written Credit

question 13

Multiple Choice

Once a small business has established a firm written credit policy and has clearly communicated it, the next step in building an effective credit policy is to ________.

• A)send invoices promptly
• B)determine what percentage of sales are being written off as bad debt
• C)create a simple credit application
• D)create a "tracking file" of events

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Definitions:

Channel Conflict

A situation where channels in a distribution chain are in competition with each other or interfere, leading to reduced efficiency or sales.

Vertical

An industry or market in which businesses provide products or services specific to a particular niche, focusing on a tightly defined area of operation.

Conventional

Adhering to established practices or methods; traditional.

Croissants

A buttery, flaky pastry of Austrian origin that is crescent-shaped and commonly associated with French cuisine.