Which of the Following Is Not Correct

question 9

Multiple Choice

Which of the following is not correct?

• A) Collection policy is how a firm goes about collecting past-due accounts.
• B) A more aggressive collection policy will reduce bad debt expenses, but may also decrease sales.
• C) Collection policy usually has little impact on sales since collecting past-due accounts occurs only after the customer has already purchased.
• D) Typically a firm will turn over an account to a collection agency only after it has tried several times on its own to collect the account.
• E) A lax collection policy will frequently lead to an increase in accounts receivable.

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Definitions:

Social Facilitation

The tendency for individuals to perform differently when in the presence of others than when alone, typically improving on simple or well-rehearsed tasks.

Obedience

The act of following orders or directions from an authority figure, often studied in social psychology.

Social Loafing

The occurrence when people put in less effort towards achieving an objective while working in a group compared to when they are working solo.

Door-In-The-Face

A persuasion technique where a large, unreasonable request is made first and, when refused, is followed by a smaller, more reasonable request.