Businesses in Deciding to Extend Credit to New Customers Try

question 19

Multiple Choice

Businesses in deciding to extend credit to new customers try to reduce defaults by:

• A)determining the probability of non-payment.
• B)gathering independent credit checks.
• C)determining if it is profitable to extend credit.
• D)determining the less profitable customers.
• E)All of the above.

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Definitions:

Elicits

Refers to the process of drawing out responses, information, or reactions from someone or something.

Behavior

The range of actions exhibited by an individual.

Potential Behaviors

Actions or reactions that an individual is capable of performing, which may be observed under certain conditions.

Observers

Individuals who watch and record behaviors or events as part of a study or assessment without directly interacting with the subjects.