A Company Extends Credit to Customers Because It Expects The

question 87

Multiple Choice

A company extends credit to customers because it expects the:

• A) rise in sales revenue to be greater than the rise in cost of extending credit.
• B) delay in receiving cash to cost more than the increase in wage costs.
• C) tax savings from a lower net income to be greater than the cost of extending credit.
• D) bad debts expense to be less than the additional wage costs.

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Definitions:

Performance in the Workplace

The degree to which an employee executes their job duties and responsibilities effectively and efficiently.

Justice

The concept of moral rightness based on ethics, rationality, law, natural law, religion, equity, and fairness, as well as the administration of the law.

Kohlberg's Stages

A theory in psychology that categorizes the development of moral reasoning into different levels and stages, from pre-conventional to conventional to post-conventional morality.

Mutual Interpersonal Expectations

The shared beliefs or standards regarding how individuals should behave towards each other in a social or professional context.