The optimum credit policy is one at which the incremental profits and expenses connected with a policy change exactly offset each other.

Question

Quizplus · Accepted Answer

The statement is true. The optimum credit policy is one that balances the additional profits gained from offering credit against the additional expenses and potential losses associated with offering credit. When these two factors are equal, it is considered the optimal credit policy.

The Optimum Credit Policy Is One at Which the Incremental