A firm's credit____________ provides guidelines for determining whether to extend credit to a customer and how much credit to extend.
A) terms
B) policy
C) standards
D) scoring

Question

Quizplus · Accepted Answer

A firm's credit policy provides guidelines for determining credit decisions and outlines the overall strategy and philosophy regarding credit extension. Terms refer to the specific payment arrangements negotiated with each customer. Standards and scoring may be part of the credit policy, but they are not the overarching guideline for credit decisions.

A Firm's Credit____________ Provides Guidelines for Determining Whether to Extend