Question
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
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 in a line of credit, tend to receive longer credit periods
E. larger accounts tend to receive more favorable credit terms
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