ABC Corp Extends Credit Terms of 45 Days to Its Customers

question 16

Multiple Choice

ABC Corp. extends credit terms of 45 days to its customers. Its credit collection would likely be considered poor if its average collection period was ________.

• A) 30 days
• B) 36 days
• C) 44 days
• D) 57 days

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Definitions:

First Offense

The initial instance or act of breaking a rule, policy, or law by an individual or entity.

Hot-Stove Rule

Principle of discipline that says discipline should be like a hot stove, giving clear warning and following up with consistent, objective, immediate consequences.

Discipline

A system of rules and procedures for maintaining order and efficiency, often applied in organizations and workplaces.

Privacy Issues

Concerns related to the protection and handling of personal information and the implications on individual privacy.