2B5U CONSIDER THE FOLLOWING FACTORS AFFECTING A COMPANY AS IT IS REVI...

156.

CSO: 2B5d

LOS: 2B5u

Consider the following factors affecting a company as it is reviewing its trade credit

policy.

I.

Operating at full capacity.

II.

Low cost of borrowing.

III.

Opportunity for repeat sales.

IV.

Low gross margin per unit.

Which of the above factors would indicate that the company should liberalize its credit

policy?

a.

I and II only.

b.

I, II and III only.

c.

II and III only.

d.

III and IV only.