The minimum acceptance criteria for extending credit to an applicant should be based on:

Question

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The minimum acceptance criteria for extending credit to an applicant should be based on the firm's credit standards. These standards are established to assess the creditworthiness of applicants and manage the risk associated with extending credit. They do not directly depend on the current level of accounts receivable, the desire for increased sales levels, or the economic order quantity model, which is more relevant to inventory management.

The Minimum Acceptance Criteria for Extending Credit to an Applicant