The Belief That Others Will or Should Take the Responsibility

question 21

Multiple Choice

The belief that others will or should take the responsibility for providing assistance to a person in need is called

• A) the bystander effect.
• B) diffusion of responsibility.
• C) pluralistic ignorance.
• D) audience inhibition.

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Definitions:

Break-Even Default Rate

The default rate at which the expected return from a loan equals the cost of the loan, resulting in no profit or loss.

Net 30 Credit Policy

A specific credit term where customers are given 30 days to pay the invoice in full, widely used in business transactions to manage cash flow.

Monthly Interest Rate

The interest rate expressed as a monthly percentage, determining the amount of interest charged or earned per month.

Credit Policy

A set of guidelines that a company follows to determine credit limits and terms for customers, aiming to manage risk and promote sales.