Which of the Following Is Not Correct

question 31

Multiple Choice

Which of the following is not correct?

• A) A more aggressive collection policy will reduce bad debt expenses, but may also decrease sales.
• B) Collection policy usually has little impact on sales since collecting past-due accounts occurs only after the customer has already purchased.
• C) Typically a firm will turn over an account to a collection agency only after it has tried several times on its own to collect the account.
• D) A lax collection policy will frequently lead to an increase in accounts receivable.
• E) Collection policy is how a firm goes about collecting past-due accounts.

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Definitions:

Marketing Synergies

The combined effect that is greater than the sum of their individual effects, achieved by coordinating marketing activities.

Product Differentiation

A marketing strategy where a company attempts to make its product appear unique and more attractive than those of its competitors.

Market Segment

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

North Carolina

A U.S. state located in the southeastern region, known for its diverse landscapes ranging from Atlantic Ocean beaches to the Appalachian Mountains.