Credit standards for extending credit to customers

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Reference no: EM13914620

Effective credit management involves establishing credit standards for extending credit to customers, determining the company's term of credit, and setting up procedures for invoicing and collecting past-due accounts.

The following statement refers to a credit management policy. Select the best term to complete the sentence.

The minimum financial strength a customer must have to be granted credit is indicated by the company's

______________.

A. credit standards

B. Terms of credit

C. collection of policy

Reference no: EM13914620

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