A Customer Has Ordered Goods with a Value of $1200

question 48

Multiple Choice

A customer has ordered goods with a value of $1200. The production cost is $800. Under what conditions should you extend credit if there is no possibility of repeat orders?

• A) If the probability of payment exceeds 0.67
• B) If the probability of payment exceeds 0.75
• C) If the probability of payment exceeds 0.80
• D) If the probability of payment exceeds 0.90 p(1200 - 800) - (1 - p)(800) = 0; p = 0.67

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Definitions:

Challenging Problem

A complex issue or situation that requires innovative and thoughtful solutions, often involving critical thinking and creativity.

Technical Leadership

A leadership style focused on expertise, technology, and processes, often in fields requiring specialized knowledge.

Challenging Situation

A circumstance that presents difficulty, complexity, or adversity that requires problem-solving and adaptation.

Holding Environment

A psychological or social space created to foster security, reflection, and change, often used in therapy or organizational change efforts.