A Disadvantage of Using Credit as a Source of Liquidity

question 73

Multiple Choice

A disadvantage of using credit as a source of liquidity is the

• A) inconvenience of using credit.
• B) potential cost of finance charges.
• C) acceptability of credit by creditors.
• D) poor records available after credit use.

---

Definitions:

Alternative Dispute Resolution

Alternative Dispute Resolution is a method of resolving disputes without litigation, using techniques like mediation and arbitration.

Open-Door Policy

A management approach that encourages open communication and direct interaction between employees and higher-level management.

Peer Review

The evaluation of work or performance by other people in the same field in order to maintain or enhance quality and credibility.

Open-Door Policy

A management approach where employees are encouraged to directly communicate their concerns, suggestions, or feedback to senior management without going through formal channels.