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.