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Do you believe that a company would increase its profitability if it tightened or loosened its credit policy?

Do you believe that a company would increase its profitability if it tightened or loosened its credit policy?

Top Answer

It would decrease their profitability. The reason for this is profitability is a percentage of net income / net sales.... View the full answer

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What is Credit Policy? Credit policy are the guidelines or rules that the companies follow at the time of selling the goods... View the full answer

Let me explain the... View the full answer

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