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.

---

Definitions:

Informative Message

Communication designed to convey factual information and increase the recipient's understanding of a topic.

Reader Benefits

The advantages or useful information that readers gain from engaging with a text.

Goodwill Endings

Concluding statements in communications that are intended to leave a positive impression and foster good relationships between parties.

Standard Invitations

Formal or semi-formal requests to attend events or meetings, often following a recognized format.