Which of the following characteristics will tend to cause a firm to adopt a more liberal credit policy?
I.Repeat customers
II.Excess capacity
III.High variable costs
IV.Limited competition
A)I and II only
B)III and IV only
C)I, II, and III only
D)II, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

Repeat customers and excess capacity encourage a firm to adopt a more liberal credit policy to increase sales and utilize capacity.

Which of the Following Characteristics Will Tend to Cause a Firm