Site navigation

Which one of the following is NOT an integral part of credit policy of a business firm?

A firm's internal receivables Credit Policy consists of three integral, controllable decision variables: (1) Credit Standards, (2) Credit Terms (credit period and cash…

Choose your answer

Which one of the following is NOT an integral part of credit policy of a business firm?

Select one answer
Answer and explanation

Correct answer D

A firm's internal receivables Credit Policy consists of three integral, controllable decision variables: (1) Credit Standards, (2) Credit Terms (credit period and cash discount), and (3) Collection Policy. External 'Credit rating' of corporate debt securities by rating agencies is not an internal component of trade credit policy.

Practice for these exams

  • UGC NET Management

Related question papers

Related exam syllabi

Related questions in this topic