CORRECT ANSWER C. A COMPANY SHOULD CONSIDER LIBERALIZING ITS CR...
156.
Correct answer c. A company should consider liberalizing its credit policy if it has a low cost
of borrowing and the opportunity for repeat sales. Steady customers would be attracted by a
liberal credit policy and if the company needs to borrow funds because of slower than expected
payments, the cost would not be too high. Factors I and IV have no relationship to credit
policy.