Businesses, in Deciding to Extend Credit to New Customers, Try

question 36

Multiple Choice

Businesses, in deciding to extend credit to new customers, try to reduce defaults by:

• A)determining the probability of non-payment.
• B)gathering independent credit checks.
• C)determining if it is profitable to extend credit.
• D)All of the above.
• E)None of the above.

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Definitions:

Virtue

A trait or quality deemed to be morally good and thus is valued as a foundation of good moral being.

Temptation

A desire to engage in short-term urges for enjoyment that threatens long-term goals, relevant in marketing when consumers are enticed by products.

Myth

A traditional story, often involving supernatural beings or phenomena, that serves to explain a natural or social phenomenon.

Uncertainty Avoidance

A cultural dimension that describes the degree to which people in a society feel uncomfortable with ambiguity, uncertainty, and risk, influencing behaviors and practices.