The three components of credit policy are:
A) collection policy, credit analysis, and interest rate determination.
B) collection policy, credit analysis, and terms of the sale.
C) collection policy, interest rate determination, and repayment analysis.
D) credit analysis, repayment analysis, and terms of the sale.
E) interest rate determination, repayment analysis and terms of salE.

Question

Quizplus · Accepted Answer

The three components of credit policy are collection policy, credit analysis, and terms of the sale. Collection policy includes strategies for collecting overdue payments from customers. Credit analysis involves evaluating a customer's creditworthiness and determining the credit limit. Terms of the sale refer to the payment structure and time period allowed for customers to pay for purchases. Interest rate determination and repayment analysis may be factors within these three components, but they are not standalone components of credit policy.

The Three Components of Credit Policy Are