Credit policies and cash flow are more likely to be emphasized in the business plan for:
A) a service firm.
B) a retailer.
C) a wholesaler.
D) Emphasis will be equal for all three.

Question

Quizplus · Accepted Answer

Wholesalers often deal with large volumes of goods and extended credit terms, making the management of credit policies and cash flow crucial to their operations. Retailers and service firms may also focus on these areas, but the nature of wholesaling, which involves buying in bulk and selling to retailers or other professional business users, typically places a greater emphasis on these aspects.

Credit Policies and Cash Flow Are More Likely to Be