Which of the Following Statements Correctly Reflect the Effects of Granting

question 54

Multiple Choice

Which of the following statements correctly reflect the effects of granting credit to customers?
I.Total revenues may increase if both the quantity sold and the price per unit increase when credit is granted.
II.A firm's cash cycle generally increases if credit is granted,all else equal.
III.Both the cost of default and the cost of discounts must be considered before granting credit.
IV.A firm may have to increase its long-term borrowing if it decides to grant credit to its customers.

• A)I, II, and III only
• B)II, III, and IV only
• C)I, III, and IV only
• D)I, II, and IV only
• E)I, II, III, and IV

Explore the effects of societal reaction (labeling) on individuals’ identities and behaviors.

Understand the complexities involved in the reactions to norm or rule violations and their consequences.

Understand the concept and implications of the deterrence hypothesis in social control.

Recognize and explain the concept of positive deviance and its societal impact.

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Definitions:

Legal Services

Professional services provided by lawyers or legal practitioners related to the law.

Industrial Firm

An organization that produces goods through the processing of raw materials, manufacturing of products, and (in most cases) the sale of these products to traders, other industries, and end consumers.

Reprocesses

The act of processing materials or products again, often to recover usable elements or to ensure quality standards are met.

NAICS

The North American Industry Classification System, a standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.