BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Give customers extra time to pay if they request it.
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Immediately drop customers who cannot meet payment deadlines.
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Use procedures that retain the goodwill of the customer.
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Encourage credit sales when customers do not have the financial means to pay.
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Detailed explanation-1: -A credit policy can help protect you against clients who don’t pay what they owe and boost your cash flow. A credit policy determines which clients are eligible for credit from your company and outlines how you’ll collect unpaid debts.
Detailed explanation-2: -Customer goodwill is the positive feeling of alignment and support a customer has for your brand. It’s made up of intangible assets such as brand recognition, customer loyalty, and customer value.
Detailed explanation-3: -Credit terms are the stipulations under which the firm sells on credit to its customers. These are with regard to the repayment of the credit sales amount. Credit period: It is time duration for which credit is extended to the customers.