Which of the Following Is least Likely to Help a Company

question 79

Multiple Choice

Which of the following is least likely to help a company minimize losses as credit standards are relaxed?

• A)Require potential customers to provide bank guarantees.
• B)Ask a potential customer for references regarding payment history.
• C)Increase the estimate of uncollectible accounts at the end of each period.
• D)Check a potential customer's credit rating.

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Definitions:

Clean Air

The state of the atmosphere when it is free from pollutants and substances harmful to living organisms and the environment.

Imperfect Information

A situation where all parties in a transaction do not have equal access to all relevant information.

Used-Car Market

The market where second-hand cars are traded, either through private sales or via dealerships.

Efficient Allocation

The optimal distribution of resources among different entities to maximize productivity or satisfaction without waste.