The optimal credit policy of any firm will:
A)maximize sales.
B)minimize bad debts.
C)maximize units sold.
D)minimize the total costs of granting credit.
E)minimize carrying costs.

Question

Quizplus · Accepted Answer

The optimal credit policy aims to minimize the total costs associated with granting credit, which includes balancing the costs of bad debts, carrying costs, and the opportunity costs of lost sales.

The Optimal Credit Policy of Any Firm Will