When Should Credit Standards Be Relaxed

question 122

Multiple Choice

When should credit standards be relaxed?

• A) When sales are expected to increase.
• B) When costs are expected to decrease.
• C) When costs are expected to increase faster than sales if the standards are not relaxed.
• D) When the profit contribution from sales is greater than the cost contribution.

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Definitions:

Behaviorism

A theoretical approach in psychology that prioritizes the study of observable behavior over internal mental processes, emphasizing the effects of environment on behavior.

Trait Theory

An approach in psychology that focuses on the identification and measurement of specific personality traits.

Conscious Behavior

Actions and responses that are controlled by awareness and deliberation, reflecting intentionality.

Personality

A combination of emotional, attitudinal, and behavioral response patterns of an individual, distinct and consistent across different situations.