To Reduce the Time and Expense of Collecting Accounts Receivables,some

question 114

Multiple Choice

To reduce the time and expense of collecting accounts receivables,some firms:

• A)extend credit to new customers.
• B)offer extended payment plans to existing customers.
• C)adopt a just-in-time inventory policy.
• D)accept bank-issued credit cards.

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Definitions:

Bystander Effect

A social psychological phenomenon where individuals are less likely to offer help to a person in need when other people are present.

Commotion

Disturbance or turmoil caused by a large amount of noise and confusion.

Social Exchange Theory

A sociological and psychological theory that studies the social behavior in the interaction of two parties that implement a cost-benefit analysis to determine risks and benefits.

Equity

The concept of fairness or justice in the way people are treated, often related to social, economic, and legal contexts.