According to Your Text, the Most Serious Limitation of the Observational

question 277

Multiple Choice

According to your text, the most serious limitation of the observational method of assessment is

• A) differentterpretations by different observers.
• B) that the presence of observer can alter the behaviour being observed
• C) expense of setting up, training and conducting observation.
• D) misinterpretation of behaviour by observers.

---

Definitions:

Probability of Payment

The likelihood or chance that a borrower will meet their debt obligations on time.

Cash Discount Period

The time frame within which a purchaser can pay less than the full invoice amount due to taking advantage of a cash discount offered by the seller.

Credit Period

The duration of time a buyer is allowed to pay for goods or services after the delivery date.

Type of Credit Instrument

A financial tool or document, such as a loan or bond, that provides evidence of debt or an extension of credit from one party to another.