Which one of the following statements is false as it relates to considerations firms use when establishing a credit policy?

A) A firm that supplies a perishable product will tend to offer restrictive credit terms.
B) A firm whose customers are in a high-risk business will tend to offer restrictive credit terms.
C) Lengthening the credit period effectively reduces the price paid by the customer.
D) Small accounts, associated with firms that find it difficult to acquire a line of credit, tend to receive longer credit periods.
E) Larger accounts tend to receive more favorable credit terms.


D) Small accounts, associated with firms that find it difficult to acquire a line of credit, tend to receive longer credit periods.

Business

You might also like to view...

Marsden Company has three departments occupying the following amount of floor space:   Department 115,000sq. ft.Department 210,000sq. ft.Department 325,000sq. ft.How much store rent should be allocated to Department 3 if total rent is equal to $200,000? (Do not round intermediate calculations.)

A. $66,667 B. $100,000 C. $50,000 D. None of the answers are correct.

Business

Which of the following statements is FALSE regarding team problem solving?

a. Team should include critical thinkers. b. Team should analyze the problem, develop alternatives, and select the best solution. c. Process should include social, emotional, and political factors. d. Team discussions should include differing opinions.

Business

With respect to the evolution of advertising in the United States, the ________ age started at the end of World War II and lasted until about 1979.

A. global interactive B. preindustrial C. postindustrial D. golden E. industrial

Business

If the Mexican peso is valued at 10.812 per U.S. dollar, compute the value in U.S. currency of 5,00 . Mexican pesos

Business