A Senior Manager Argues That the Negative Perception Associated with Mounting

question 5

Multiple Choice

A senior manager argues that the negative perception associated with mounting credit card debt will affect StarMart.Which of the following would be the MOST effective measure StarMart could take to address this potential problem?

• A) offering to forgive all debt more than 90 days old
• B) making it clear that StarMart is a different entity than Axiom-Star
• C) pointing out the records and practices of the worst-behaved credit companies
• D) extending the expiration date of StarMart reward points
• E) extending credit only to those who are very likely to be able to pay their bills

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Definitions:

Capital Investment

Funds spent by a company to acquire or upgrade physical assets, such as property, industrial buildings, or equipment, to improve its business capacity or efficiency.

Partnership Creditors

Individuals or entities to whom a partnership owes money or has some form of legal financial obligation.

Pro Rata

In proportion; according to the calculated share or division.

Apparent Authority

A situation in which a reasonable person would understand that an agent had authority to act, even if the agent did not have actual authority.