Are the Criteria the Firm Uses to Screen Credit Applicants

question 46

Multiple Choice

are the criteria the firm uses to screen credit applicants in order to determine which of its customers should be offered credit and how much.

• A)Credit terms
• B)Credit standards
• C)Seasonal datings
• D)Credit extension policies

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Definitions:

Drive Reduction

A motivation theory that suggests behavior is motivated by the desire to reduce internal drives of tension or arousal that arise from unmet needs.

Pleasure Principle

A psychoanalytic concept suggesting that individuals seek pleasure and avoid pain to satisfy their biological and psychological needs.

Optimal Arousal

A theory suggesting there is a level of arousal that is ideal for facilitating optimal performance on a task or activity.

Incentives

Rewards or stimuli that motivate individuals to perform actions or behaviors, often used to encourage desired outcomes.