Why Is Customer Credit Checked Before Checking Availability of Goods

question 9

Multiple Choice

Why is customer credit checked before checking availability of goods?

• A) for the smooth working of the process
• B) for arranging the special terms
• C) to prevent the wastage of verification labor
• D) to align the processes with organizational goals

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Definitions:

Opportunity Cost

The cost of an alternative that must be forgone as a result of choosing another option, representing the benefits that could have been received by taking a different path.

Free Lunch

An expression indicating that obtaining goods or services without cost or effort is impossible in economic terms, as there's always a trade-off.

Economic Theory

An organized set of concepts and principles that aims to explain how economies function and to provide a framework for economic policy decisions.

Anomaly

An anomaly refers to something that deviates from what is standard, normal, or expected, often presenting a challenge to conventional understanding.