In an Analysis of Alternative Credit-Management Policies, Which of the Following

question 112

Multiple Choice

In an analysis of alternative credit-management policies, which of the following components will cause the net present value of receivables on credit sales to increase, if everything else remains constant?

• A) A tougher collections policy that reduces the bad debt loss ratio.
• B) A higher cost per unit sold.
• C) A longer average collection period.
• D) An increase in the cost of capital.

---

Definitions:

Unconditioned Response

An automatic, natural response to a stimulus that occurs without any need for prior learning or conditioning.

Reflexive Response

A biological reaction to a stimulus that is instinctive and does not require conscious thought.

Conditioned Response

A learned reaction to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.

Conditional Reinforcement

Conditional reinforcement is the process by which a stimulus reinforces a behavior only when it is paired with a primary reinforcer or another strong reinforcer.