Which One of the Following Statements Generally Applies to the Credit

question 314

Multiple Choice

Which one of the following statements generally applies to the credit period?

• A) The larger the account size, the longer the credit period.
• B) The greater the competition, the shorter the credit period.
• C) The more perishable a product, the longer the credit period.
• D) The higher the demand for a product, the longer the credit period.
• E) The lower the cost of an item, the longer the normal credit period.

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Definitions:

Escalating commitment

The phenomenon where people increase their investment or continue a course of action even if it's not leading to the desired outcome, often to justify prior investments.

Problem or opportunity

A situation that presents difficulties needing to be solved or chances that offer possibilities for positive outcomes.

Choosing a course

The process of selecting an educational or training path that aligns with one's interests, career goals, or academic requirements.

Decision-making model

A conceptual framework or process used to make systematic and informed choices among available options.