Which of the Following Statements About Collection Messages Is INCORRECT

question 17

Multiple Choice

Which of the following statements about collection messages is INCORRECT?

• A) Messages in the reminder stage are not considered persuasive.
• B) Messages in the warning stage are not concerned with maintaining a customer's goodwill.
• C) The number of steps in each stage may vary.
• D) The writer of a collection message in the appeal stage should not mention a customer's reputation or credit rating.

---

Definitions:

Time Value

Time value relates to the concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Voting Stock

Shares that give the shareholder the right to vote on corporate matters, such as electing directors and approving company policies.

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus depreciation.

Fair Value

The estimated market price of an asset or liability in an orderly transaction between market participants at the measurement date.