Which of the Following Practices Is Not a Modification of the Classical

question 65

Multiple Choice

Which of the following practices is not a modification of the classical economic model?

• A)philanthropy
• B)community obligations
• C)owner contra I
• D)paternalism

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Definitions:

Credit

The ability of a borrower to obtain goods or services before payment, based on the trust that payment will be made in the future.

Cash Only Credit Policy

A policy where a company or business does not extend credit to customers and requires payment in cash at the point of sale.

Monthly Interest Rate

The interest rate applied to a loan or debt for one month, often used to calculate the monthly interest payments.

Variable Cost

A variable cost varies with the level of output or sales, meaning it increases as production increases and decreases as production decreases.