Which of the Following Should You Do When Responding to a Claim

question 42

Multiple Choice

Which of the following should you do when responding to a claim letter?

• A)Use a tone intended to intimidate the reader and cause him/her to abandon the claim, whether it is justified or not.
• B)Remind the reader of what went wrong and indicate that the person at fault has been punished.
• C)Delay responding to the letter in the hope that the writer will decide not to pursue the claim.
• D)Seek to regain the customer's confidence and goodwill.

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Definitions:

Negative Net Cash Flow

A situation where a company's outgoing cash exceeds the incoming cash during a specific period, indicating potential financial trouble.

Financial Statements

Structured reports that detail the financial performance of an organization, typically including the balance sheet, income statement, and cash flow statement.

Depreciation Expenses

The allocation of the cost of tangible assets over their useful lives, recognized as an expense on the income statement.

Retained Earnings

Profits that a company chooses not to distribute as dividends to shareholders but instead reinvests in the business or keeps as reserve.