Which of the Following Steps Is the Most Appropriate If

question 35

Multiple Choice

Which of the following steps is the most appropriate if a company decides to accept more risk and sell to companies with lower credit scores?

• A) modifying the credit checking process
• B) implementing different ways of checking credit
• C) approving special terms before checking the credit
• D) shipping the inventory directly from the manufacturer to lower the credit

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Definitions:

Compensatory Stock Option Plans

Employee benefit plans which grant the option to purchase company stock at a discounted price as compensation or incentive.

Performance-Based Stock Option Plans

Incentive programs that grant options to employees as rewards for achieving specific performance targets.

Convertible Preferred Stock

A type of preferred stock that holders can convert into a predetermined number of common shares, often at a set price.

Preferred Stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock, usually with fixed dividends.