Of the following, a firm _______________ will likely have the most liberal credit policy.

A) That has a core group of customers, who purchase inventory on a frequent basis.
B) That is presently operating its manufacturing facilities at maximum capacity.
C) That is a wholesaler of fresh flowers.
D) That is experiencing severe cash flow problems due to tremendous growth.
E) Whose operating costs are almost all variable costs.

Credit Policy

Credit policy refers to the guidelines that a company follows to determine the credit terms under which it will extend credit to its customers.

Severe Cash Flow

A situation where a business or individual experiences extreme difficulties in generating enough cash to cover operating expenses or meet financial obligations.

Liberal Credit Policy

A liberal credit policy is a financial strategy where companies extend credit terms to customers more freely, aiming to increase sales volume by allowing more flexible payment options.