This represents the basic criteria for the extension of credit to customers.Select one:a.Credit Standardsb.Credit Analysisc.Credit Termsd.Credit Policies

To determine the correct answer in this context, let's analyze each option in relation to the criteria for extending credit to customers.

1. Credit Standards: This involves the criteria set by a company to evaluate potential customers' ability to pay back credits. Essentially, it determines who qualifies for credit based on their financial health and creditworthiness.

2. Credit Analysis: This refers to the assessment process of evaluating a customer's credit history and financial position to determine their risk level. While closely related, this is more about the evaluation rather than the criteria used for extending credit itself.

3. Credit Terms: This refers to the specifics of the credit offered, such as payment periods and interest rates. It is not directly about the criteria for extension but rather the conditions attached once credit is granted.

4. Credit Policies: This encompasses a set of guidelines that dictate how credit is extended, managed, and monitored within an organization. It outlines the criteria, analysis, and terms related to credit.

Conclusion

The best option that directly relates to the basic criteria for the extension of credit to customers would be a. Credit Standards, as it specifically addresses the benchmarks used to qualify customers for credit.