Asked by Natalia Hernandez on Jul 01, 2024
Verified
Which of the following would tend to increase decrease the credit period?
A) The product is a low-priced item.
B) The product is a standardized raw material.
C) The product is a high-priced item.
D) The product is well established in the marketplace.
E) The product has low collateral value.
Credit Period
The duration of time the buyer is allowed to pay for a purchase after the sale has been made, without incurring any interest.
High-priced Item
An item or asset that has a high cost or value, often relative to similar items in the market.
Low Collateral Value
Low collateral value refers to assets that have declined in worth, offering less security for loans and reducing borrowing capacity.
- Absorb the essential definitions and theories related to credit management, covering topics such as credit periods and credit scoring.
Verified Answer
HW
Hannah Wonderfulkind6 days ago
Final Answer :
C
Explanation :
Products that are high-priced often have longer credit periods to make them more accessible to buyers, as the high cost can be a barrier to immediate payment.
Learning Objectives
- Absorb the essential definitions and theories related to credit management, covering topics such as credit periods and credit scoring.