Ans- Option E. Increased Competition.
As to increase sales in Competition, Firm has to extend Credit policy to influence customers to buy. Thus Firm extend credit policy in increased competition
Which one of the following factors most supports a longer credit period being offered to customers?...
9. Which one of these statements is correct? A) Total revenues generally decrease if both the quantity sold and the price per unit increase when credit is granted. B) A firm's cash cycle generally decreases when it switches from a cash to a credit policy, all else equal. C) A firm may have to increase its long-term borrowing if it decides to grant credit to its customers D) Most customers will forgo the discount and pay at the end of...
2. Why do new products fail? Select one: a. Because most products today have longer product life, there is less need for new products. b. Marketers tend to underestimate the market size and underestimate demand which results in lost customers. c. New product development doesn't effectively consider the "job-to-be-done" of the target audience. d. Social and governmental regulations have significantly increased new product development costs making it harder for new products to succeed.
The firm is considering granting credit period to a customer, which of the following is most appropriate to be considered as an upper limit of the customer’s credit period? A) The customer’s cash cycle B) The firm’s operating cycle C) The firm’s payable period D) The customer’s operating cycle
The firm is considering granting credit period to a customer, which of the following is most appropriate to be considered as an upper limit of the customer’s credit period? A) The customer’s cash cycle B) The firm’s operating cycle C) The firm’s payable period D) The customer’s operating cycle
1.Which one of the following categories of securities had the most volatile annual returns over the period 1926–2016? a ,Long-term corporate bonds b,Large-company stock c,Intermediate-term government bonds d,U.S. Treasury bills e,Small-company stocks 2. Which one of the following statements is correct based on the historical record for the period 1926–2016? a,The standard deviation of returns for small-company stocks was double that of large-company stocks. b,U.S. Treasury bills had a zero standard deviation of returns because they are considered to be...
Factors that influence of corporate characteristics include the following except a. M N C’s Cash Flow Stability — M N Cs with more stable cash flows can handle more debt because there is a constant stream of cash inflows to cover periodic interest payments on debt. b. M N C’s Credit Risk — M N Cs that have lower credit risk have more access to credit. c. M N C’s Access to Retained Earnings — Highly profitable M N Cs...
Which of the following are factors that influence business risk? Select one: a. Uncertainty about output prices b. Uncertainty about demand c. Uncertainty about input costs d. Product and other types of liability e. All of the above
12:037 final exam.pdf d wary of future downturns, and shift the supply curve for kanable funds to the left 23. Since the future holds more uncertainty over longer periods of time, lenders generally want a higher interest rate for loans over a longer period ba lower interest rate for loans over a longer period a higher interest rate for loans over a shorter period d. None of these is true 24. When a borrower fails to pay back a lon...
22. Which of the following factors most likely would heighten an auditor's concern about the risk of fraudulent financial reporting? a..The audit committee's approval of the initial selection of accounting principles. b..A lack of competition in the entity's industry, accompanied by increasing profit margins. c..Management's disclosure of unresolved litigation and contingent liabilities. d..Year-end adjustments by the entity that significantly affect financial results 23. Which of the following factors most likely would cause an accountant not to accept an engagement to...
8) Financial markets allow for all but which one of the following? A) allow most participants to routinely earn high returns with low risk B) price securities according to their riskiness C) shift consumption through time from higher-income periods to lower D) channel funds from lenders of funds to borrowers of funds