Which of the Following Mechanisms Is Unfair

question 161

Multiple Choice

Which of the following mechanisms is unfair?

• A) Market.
• B) First-come, first-served.
• C) Government
• D) Random
• E) All of these are unfair in a sense; it depends on the incentives each creates.

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Definitions:

Bad Debt Expense

A cost reported on the income statement, reflecting credit sales that are not expected to be collected.

Retailer

A business entity that sells goods or merchandise directly to consumers.

Collection Process

Procedures followed by a business to collect money owed by customers.

Issuer

The entity responsible for providing a financial instrument or security, such as bonds, shares, or notes, to the market or the public.