Which One of the Following Statements Is Correct

question 19

Multiple Choice

Which one of the following statements is correct?

• A)If the majority of a firm's new customers become repeat customers then there is a strong argument against extending credit even if the default rate is low.
• B)A customer's past payment history reveals little information in relation to his or her future tendency to pay.
• C)A suggested policy for offering credit to new customers is to limit the amount of their initial credit purchase.
• D)The risk of issuing credit is the same for a new customer as it is for an existing customer.
• E)The recommended credit policy for new customers is to extend the maximum amount of credit you will ever be willing to offer as an enticement to get their business.

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Definitions:

Rater Training

A training process for individuals who evaluate the performance of others, aimed at improving the accuracy and consistency of their assessments.

Results-Based Formats

Performance evaluation strategies focused on assessing outcomes and results achieved by employees or organizations, rather than just actions taken.

Difficult to Quantify

Describes variables or outcomes that are challenging to measure or express numerically due to their subjective or intangible nature.

Job Behaviors

Actions and conduct exhibited by employees that are related to their job performance.