Which One of the Following Statements Is Correct

question 90

Multiple Choice

Which one of the following statements is correct?

• A) Firms may opt to refuse additional credit to a delinquent customer.
• B) Seasonal sales have little, if any, impact on aging schedule percentages.
• C) Normally, firms call their delinquent customers prior to sending them a past due letter.
• D) If a firm wishes to sell a delinquent receivable, it must do so prior to the customer filing for bankruptcy.
• E) Expected decreases in the average collection period are a cause of concern.

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Definitions:

Resource

An asset or input that is utilized in the production of goods and services, often categorized into natural, human, and capital resources.

MRP

Short for Marginal Revenue Product, it represents the additional revenue generated by employing one more unit of a factor, such as labor or capital.

Imperfect Competitor

An imperfect competitor is a market participant that does not meet the conditions of perfect competition, often having some control over the price of its products due to a lack of numerous competitors or product differentiation.

Perfect Competitor

A theoretical firm in a perfectly competitive market that cannot influence the market price and accepts the price as given.