When Responding to a Claim When Your Company Is at Fault

question 89

Multiple Choice

When responding to a claim when your company is at fault, it is best to

• A)avoid sympathizing with the customer, since it can lead to lawsuits.
• B)do all you can to discourage any need for follow-up.
• C)take (or assign)personal responsibility for setting matters straight.
• D)be vague about when the claim may be resolved.

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Definitions:

Inventory Turnover

A ratio that shows how many times a company's inventory is sold and replaced over a specified period, indicating the efficiency of inventory management.

Operating Cycle

The amount of time it takes for a business to purchase inventory, sell products, and receive cash in exchange for those products, reflecting the efficiency of a company's cash flow.

Accounts Receivable Turnover

A financial metric that assesses how efficiently a company collects on the credit it extends to customers by measuring how often receivables are collected during a period.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.