Businesses Are Often Required to Extend Credit as a Means

question 5

Multiple Choice

Businesses are often required to extend credit as a means of increasing sales.Before granting credit,businesses are encouraged to take any of the following steps EXCEPT

• A)take advantage of the available public records of credit history,proposals,and bankruptcies.
• B)search both the corporate name of the debtor and its directors and officers to determine if the company is merely a fresh start after a bankrupt business.
• C)not request personal guarantees of the principals because the company's agreement to pay will always suffice.
• D)take security in the goods provided.
• E)set up a control system to monitor lien periods for building supplies and limitation periods.

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Definitions:

'Emic' Analyses

Cultural studies or analyses that are conducted from within the cultural group, using concepts and categories that are meaningful and relevant to the group itself.

Cross-Cultural Analyses

Comparing and contrasting behaviors, customs, norms, and values across different societies or cultures to understand human behavior in a broader context.

Generic Analyses

Assessments or studies designed to be broadly applicable across different contexts, often without specific customization to a particular scenario.

Social Identity Theory

Theory of group membership and intergroup relations based on self-categorization, social comparison and the construction of a shared self-definition in terms of ingroup-defining properties.