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B. buyer is compensated for its opportunity costs.C. seller receives a prepayment in full.D. invoice is paid over time interest free.E. ownership of the goods changes to the buyer immediately upon delivery. 19.The decision to grant credit should consider all of the following except the:20.Since the credit decision usually includes riskier customers, the decision should adjust for this by: 21.Assume you graph the costs of granting credit against the amount of credit extended. The optimal credit amount is then determined by the point which: 22. All of the following can provide credit information about a customer except:A. the customer’s financial statements.B. credit reports.C. the customer’s current payment history with the seller.D. the amount of goods the customer desires to purchase.E. banks.
23.Determining the optimal credit policy is based on a trade-off between the carrying costs of granting credit and the: 24.Which one of the following statements is false? 25.To collect on the accounts receivable due to the firm, a firm can do all of the following except:26. Credit analysis is best described as the process of:A. collecting on an accounts receivable.B. determining the optimal credit terms.C. establishing the length of the credit period.