The Credit Decision Usually Includes Riskier Customers

question 17

Multiple Choice

The credit decision usually includes riskier customers. The credit decision should adjust for this by:

• A) determining the probability that customers will pay, reducing the expected cash flow.
• B) discounting the net cash flows at a higher discount rate.
• C) discounting the cash inflow at a higher discount rate.
• D) delaying collections on these customers.
• E) speeding up deliveries to riskier customers.

---

Definitions:

Bereavement

The period of mourning and grief following the death of a loved one.

Resilient

The ability of an individual, community, or system to withstand or recover quickly from difficult conditions.

Acute-Recovery

Refers to the phase immediately following an acute event or condition, where the focus is on healing and returning the individual to their previous state of health.

Dignity Therapy

A psychological intervention aimed at enhancing end-of-life patients' sense of purpose, meaning, and self-worth.