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What should a firm do after establishing a credit policy?

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What should a firm do after establishing a credit policy?

What should a firm do after establishing a credit policy?

▸ Decide what should be done for those customers who do not pay their accounts on time.

▸

Monitor its accounts receivable to analyze whether its credit policy is effective.

▸ Determine what percent of monthly sales are collected in the month after that sale.

▸ Decide on the length of the period before payment must be made.

Textbook

Fundamentals of Corporate Finance

Edition: 2^nd

Authors: Berk, DeMarzo, Harford

Read 221 times

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