The set of rules that determines whether or not to extend credit is known as:
A)Credit analysis
B)Credit policy
C)Multiple discriminate analysis
D)The terms of trade credit

Question

Quizplus · Accepted Answer

The set of rules that determines whether or not to extend credit is known as credit policy, which outlines the criteria for granting credit, the terms of repayment, and the consequences for late or non-payment. Credit analysis refers to the process of evaluating a borrower's creditworthiness based on various factors such as financial statements and credit history. Multiple discriminate analysis is a statistical technique used to predict credit risk, and the terms of trade credit refer to the agreement between a buyer and a seller regarding payment for goods or services. Therefore, B is the best choice.

The Set of Rules That Determines Whether or Not to Extend