If Easing a Firm's Credit Policy Lengthens the Collection Period

question 100

Multiple Choice

If easing a firm's credit policy lengthens the collection period and results in a worsening of the aging schedule,then why might a firm take this action?

• A)to slow down an unsustainable growth in sales
• B)to meet competitive pressures
• C)to increase the payments deferral period
• D)to shorten the cash collection cycle

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Definitions:

Affective

Pertaining to emotions or feelings; capable of eliciting or influenced by emotional responses.

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, etc.

Posthumanism

A philosophical perspective that explores the boundaries of what it means to be human, often considering the impact of technology and critically reassessing the humanist tradition.

Presumption Theory

A legal or cognitive framework that operates on the principle of assuming a fact is true until it is disproven or countered by evidence.