Question

place the following steps for developing a credit policy in the correct order of process: • a: the company hopes that few customers will miss payments, so it decides to take no action to collect bad debts. • b: the company decides that payments must be made within 4 days. • c: the company decides that its willing to lose sales in exchange for less bad debt risk. options: b, a, c; b, c, a; c, b, a; c, a, b

Explanation:

To develop a credit policy, the first step is to set the overall risk tolerance (C: deciding to trade sales for less bad debt risk). Then, define payment terms (B: setting 47 - day payment period). Finally, decide on collection actions (A: no action for bad debts as few miss payments). So the order is C, B, A.

Answer:

C, B, A