Which of the following is NOT commonly regarded as being a credit policy variable?
A. Collection policy.
B. Credit standards.
C. Cash discounts.
D. Payments deferral period.
E. Credit period.
Answer: D
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Fill in the blank(s) with the appropriate word(s).
A fire insurance policy covers losses to the insured as a result of fire and lightning, but not damage from smoke and water.
Answer the following statement true (T) or false (F)
The federal government sometimes taxes dividends and capital gains at different rates. Other things held constant, an increase in the tax rate on dividends relative to that on capital gains would logically lead to an increase in dividend payout ratios.
Answer the following statement true (T) or false (F)
Which of the following conditions must be true for clan control to be effective?
A. The company culture emphasizes status and authority. B. The company culture promotes whistle blowing. C. Managers stress the mindless following of the rules. D. The top executives are secretive about the company's values and goals. E. Managers create a culture that encourages correct behavior.