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    Principles of Managerial Finance
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    Exam 15: Working Capital and Current Assets Management
  5. Question
    A Relaxation of Credit Standards Is Expected to Affect Profits
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A Relaxation of Credit Standards Is Expected to Affect Profits

Question 127

Question 127

True/False

A relaxation of credit standards is expected to affect profits positively due to lower carrying costs, whereas tightening credit standards would affect profits negatively as a result of higher carrying costs.

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