Which of the Following Statements Is True

question 29

Multiple Choice

Which of the following statements is true?

• A) Customers in high tax brackets would be more likely to take cash discounts and corporations in high tax brackets would be more likely to offer credit.
• B) Customers in high tax brackets would be more likely to take cash discounts and corporations in low tax brackets would be more likely to offer credit.
• C) Customers in low tax brackets would be more likely to take cash discounts and corporations in high tax brackets would be more likely to offer credit.
• D) Customers in low tax brackets would be more likely to take cash discounts and corporations in low tax brackets would be more likely to offer credit.
• E) Taxes have an effect on the propensity to grant credit, but no effect on the propensity to use credit.

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Definitions:

Cause-Effect Relationships

The principle that an action or event (cause) will produce a certain response or outcome (effect).

Hawthorne Effect

The alteration of behavior by the subjects of a study due to their awareness of being observed, as first identified in research at the Hawthorne Works plant.

Motivational and Emotion Theory

A framework exploring how motivation and emotions influence human behavior, decision-making, and interactions.

Own Goals

In sports, an act of scoring a point or goal against one's own team, often resulting from a mistake or miscalculation.