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Rationale behind a liberal credit policy

Question 1: Discuss the rationale behind a liberal credit policy and its effect on sales and accounts receivable and the advantages and disadvantages of using short term debt.

Question 2: How would you use short term debt with respect to inventory management, accruals and accounts payable?

Question 3: What would the use of short term debt have on your capital structure and why?

Question 4: What are the risks associated with short term debt and why?

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Finance Basics: Rationale behind a liberal credit policy

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Finance Basics: Rationale behind a liberal credit policy

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