Which of the Following Statements Is FALSE Concerning Claim Messages

question 22

Multiple Choice

Which of the following statements is FALSE concerning claim messages?

• A)Most claims are from people who believe they have a legitimate complaint.
• B)The way an adjuster handles the complaint determines to a large extent the goodwill of the company.
• C)Complainers are less likely to continue to do business with a company than those who do not complain.
• D)Businesses that resolve claims effectively will retain most of the complainers as repeat customers.

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Definitions:

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid.

Allowance Method

An accounting technique used to estimate and account for bad debts or uncollectible accounts receivable.

Bad Debts

Accounts receivable that a company considers uncollectible and writes off as a loss in its financial statements.

Sales

The transactions involving the exchange of goods or services for money.