Increasing the credit period from 30 to 60 days, in response to a similar action taken by all of our competitors, would likely result in :

CS Executive · Financial and Strategic Management · PYQS · December 2024
Increasing the credit period from 30 to 60 days, in response to a similar action taken by all of our competitors, would likely result in :
(A) Higher profits
(B) An increase in sales
(C) A decrease in bad debt losses
(D) An increase in the average collection period

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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