The goal of a successful credit policy is to maximize the potential profit on total credit sales while

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The goal of a successful credit policy is to maximize profit, but it must also consider the potential losses that may occur through extending credit. By limiting credit losses to an acceptable level, the company can still make a profit while minimizing the risk associated with offering credit to customers. Minimizing the number of credit customers or keeping credit sales low would likely hinder profit potential, and selling only to customers who will pay is ideal but not always realistic in practice.

The Goal of a Successful Credit Policy Is to Maximize