1. A firm’s policy for offering credit to its customers includes:
a. credit terms and credit standards
b. factoring
c. the interest earned on investments in accounts receivable
d. management of accounts payable
2. Which of the following is a major problem with using inventory for collateral for short-term loans?
a. higher costs than unsecured loans
b. lenders prefer not to make secured loans
c. factoring
d. valuing the inventory