A Company Extends Credit to Customers Because It Expects The

question 1

Multiple Choice

A company extends credit to customers because it expects the:

• A)benefits from the rise in sales revenue to be greater than the cost of extending credit.
• B)interest charged to be greater than the cost of extending credit.
• C)tax savings from a lower net income to be greater than the cost of extending credit.
• D)because its borrowing cost is lower than the cost of extending credit.

---

Definitions:

Suck

To draw into the mouth by forming a partial vacuum by action of the lips and tongue, often used in the context of consuming liquids or as an infant's reflex.

Castration Anxiety

A fear identified in psychoanalytic theory, particularly in the context of the Oedipus complex, concerning the anxiety over losing one's genitalia or their power.

Freud's Psychosexual

A theory proposed by Sigmund Freud that describes how personality develops through a series of childhood stages in which the pleasure-seeking energies of the id focus on certain erogenous zones.

Phallic Stage

A phase in Freudian psychosexual development, occurring roughly between the ages of 3 and 6, where the libido's focus is on the genital area.