A Firm with ______ Profit Margin Should Extend Credit to Customers

question 95

Multiple Choice

A firm with ______ profit margin should extend credit to customers with a high probability of default.

• A)High
• B)Average
• C)Low
• D)Zero

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Definitions:

Ingroup Bias

The tendency to favor and extend better treatment to members of one's own group over those of other groups.

Outgroup Homogeneity

The perception that members of an outgroup are more similar to each other than they actually are, or more similar than members of the ingroup.

Uncertainty-Identity Theory

The theory that people join and identify with groups in order to reduce negative feelings of uncertainty about themselves and others.

Entitativity

The degree to which a group is perceived as being a coherent and distinct entity, with members sharing common characteristics or a common fate.