A Customer Has Ordered Goods Generating a Present Value of $800

question 42

Multiple Choice

A customer has ordered goods generating a present value of $800. The present value of production costs is $600. Under what conditions should you extend credit if there is no possibility of repeat orders?

• A)If the probability of payment exceeds 0.67
• B)If the probability of payment exceeds 0.80
• C)If the probability of payment exceeds 0.75
• D)If the probability of payment exceeds 0.90

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Definitions:

Products

Goods that are manufactured or refined for sale.

Human Rights

Fundamental rights and freedoms entitled to all humans irrespective of nationality, sex, ethnicity, religion, or language.

Suffrage Rights

The right to vote in public, political elections, often considered a fundamental indicator of a democratic society.

Property Rights

Legal rights associated with the ownership of property, including the right to use, rent, sell, or transfer the property.