The Decision to Grant Credit Does Not Depend On

question 57

Multiple Choice

The decision to grant credit does not depend on:

• A) delayed revenues from granting credit.
• B) the immediate costs of granting credit.
• C) the probability of payment.
• D) the appropriate required rate of return for delayed cash flows.
• E) All of these are considered in the decision to grant credit.

---

Definitions:

Reflex

An automatic, involuntary response to a stimulus that does not involve conscious thought, designed to protect the body.

Maturation

Changes that occur according to one’s genetically determined biological timetable of development.

Learning

A process that induces changes in knowledge, behaviors, or attitudes through experience, practice, or study.

Relatively Permanent

A term often used in psychology to describe changes or effects that endure over time, although not necessarily without the possibility of change.