The Optimal Credit Amount Is Determined By

question 28

Multiple Choice

The optimal credit amount is determined by:

• A) the point which minimizes the total credit cost curve.
• B) the point which maximizes the carrying costs associated with granting credit.
• C) the point which maximizes opportunity costs associated with granting credit.
• D) the point where the additional net cash flow from new customers equals the additional carrying costs of the investment in receivables.
• E) Both the point which minimizes the total credit cost curve; and the point where the additional net cash flow from new customers equals the additional carrying costs of the investment in receivables.

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Definitions:

Plateau Phase

The second phase of the sexual response cycle, which is characterized by increases in vasocongestion, muscle tension, heart rate, and blood pressure in preparation for orgasm.

Excitation Phase

The initial stage in the sexual response cycle, characterized by an increase in physiological arousal.

Orgasmic Phase

A stage of the human sexual response cycle characterized by intense pleasure and the release of sexual tension, culminating in orgasm.

Ejaculation Phase

The stage in the male sexual response cycle during which semen is expelled from the body through the urethra.