Harry and Paula are discussing how it is customary for firms to offer credit terms to their customers. Harry asks Paula how they should go about determining which customers get particular credit terms. How should Paula best answer this question?

We should offer everyone the same credit terms, in order to be fair to all our customers and not lose sales revenue.

We should consider credit checking our customers, and offering older, more established customers better credit terms.

We should preemptively set a defined credit term such as $\frac{1}{10},$ N$30$ for all customers and adjust as necessary.

We should only accept cash sales, to make sure that one hundred percent of sales are collected.