Which of the Following Is the Best Way to Reduce

question 38

Multiple Choice

Which of the following is the best way to reduce a company's losses due to bad debts?

• A) Increase sales volume by lowering their prices to make their products more affordable.
• B) Do not grant credit to companies that use a bank overdraft as a source of financing.
• C) Manage the accounts payable so that they become an automatic source of financing.
• D) Direct more customers to purchase from their on-line website using PayPal.
• E) Press the customer for immediate payment when the customer exceeds its terms of credit.

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Definitions:

Duty of Cooperation

An obligation between parties in a contract to act in good faith and assist each other in fulfilling the contract's terms.

Breach of Duty

Failure to fulfill a legal obligation or duty, leading potentially to legal liability.

Exclusive Agreement

A contract between two or more parties where one party agrees to buy, sell, or promote only the products or services of the other party.

Reasonable Efforts

A legal standard that requires a party to act with fair, honest, and diligent efforts to fulfill an obligation.