Listed in the text are seven factors that most influence the credit period. List and briefly explain five of these and give an example of a product that fits each factor.

This requires only a minor amount of creativity on the part of the students, the answers to the listing are straight from the text: (1) perishable have a short credit period, (2) low consumer demand means a longer credit period, (3) relatively inexpensive goods, standardized goods, and raw materials have shorter periods, (4) the greater the credit risk the shorter the credit period, (5) small accounts have shorter periods, (6) credit period will be longer in a competitive market, and (7) the credit period may depend on the consumer type.