Which One of the Following Statements Is Correct

question 126

Multiple Choice

Which one of the following statements is correct?

• A) If the majority of your new customers become repeat customers then there is a strong argument against extending credit even if the default rate is low.
• B) A customer's past payment history is not indicative of their future payment history.
• C) A suggested policy for offering credit to new customers is to limit the amount of their initial credit purchase.
• D) The risk of issuing credit is the same for a new customer as it is for an existing customer.
• E) The recommended credit policy for new customers is to extend the maximum amount you are willing to ever extend to that customer as their initial credit limit.

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Definitions:

Membranous Labyrinth

An intricate structure within the inner ear containing fluid-filled tubes and sacs, essential for hearing and balance.

Bony Labyrinth

A complex system of passages and cavities within the temporal bone of the skull, housing the organs of hearing and balance.

Tastant

A substance that can be tasted, stimulating the taste buds and contributing to the sense of taste.

Depolarize

To decrease the membrane potential of a cell, making the interior less negatively charged relative to the outside.