A firm's credit ________ provides guidelines for determining whether to extend credit to a customer and how much credit to extend.
A) scoring
B) terms
C) policy
D) standards

Question

Quizplus · Accepted Answer

A firm's credit policy outlines the criteria and procedures for extending credit. It typically includes guidelines for creditworthiness evaluation, payment terms, credit limits, and collections. Credit scoring, terms, and standards are components of the credit policy but do not fully encompass its scope.

A Firm's Credit ________ Provides Guidelines for Determining Whether to Extend