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.