What key cost trade offs would be involved in the decision

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Reference no: EM131316910

1. Why would a firm extend credit to its customers given that such an action would lengthen its cash conversion cycle? What key cost trade-offs would be involved in this decision? What typically dictates the actual credit terms the firm extends to its customers?

2. Why is using the five C's of credit appropriate for evaluating high-dollar credit requests but not high-volumelow-dollar requests, such as department store credit cards?

Reference no: EM131316910

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