Asked by
Tiana Porco
on Dec 09, 2024
Verified
If a firm has a detailed credit policy it will likely lead to ___________________.
A) Frequent credit sales to customers with an average to high degree of default risk.
B) A policy where virtually all sales are made for cash.
C) Only the most creditworthy of consumers receiving credit.
D) Inconsistencies in the terms of credit sales granted customers.
E) Organized payment efforts.
Credit Policy
Guidelines that a company follows to determine the creditworthiness of its customers and the terms of credit to extend.
Creditworthy
Describes a borrower who is deemed likely by lenders or creditors to repay debt obligations based on their financial health and previous repayment history.
- Comprehend how credit policy impacts sales and affects the profitability of a company.
Verified Answer
CT
Learning Objectives
- Comprehend how credit policy impacts sales and affects the profitability of a company.