Which of the following policies is a minimum standard for managing customer credit?
A) Providing cash discounts to customers who delay payments
B) Continuing credit sales to customers who become significantly late in paying
C) Authorizing credit sales without any credit check to every individual customer
D) Filing suits and liens against the assets of customers who default on payment

Question

Quizplus · Accepted Answer

Filing suits and liens against the assets of customers who default on payment is a minimum standard for managing customer credit as it helps in recovering debts and ensures that the company takes action against non-payment. Options A, B, and C are not standard practices for managing credit risk effectively.

Which of the Following Policies Is a Minimum Standard for Managing