A ﬁrm currently has a cash only credit policy. The ﬁrm is considering adopting a credit policy which
will extend credit to customers for 45 days and grant the credit customers who pay in 15 days or
less a discount.
The discount period and credit price are variables used in the analysis of this proposal that are
outside of the control of the ﬁrm.

Question

Quizplus · Accepted Answer

The discount period and credit price are variables used in the analysis of this proposal that are outside of the control of the firm.

A ﬁRm Currently Has a Cash Only Credit Policy