Which of the Following Is Not a Cost of Granting

question 17

Multiple Choice

Which of the following is not a cost of granting credit to customers?

• A) The opportunity cost of funds being tied up.
• B) Administration costs for managing receivables.
• C) Attracting new customers.
• D) The cost of carrying slow payers and bad debts.

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Definitions:

Key Innovation

An evolutionary adaptation that gives its bearer the opportunity to exploit a particular environment more efficiently or in a new way.

Adaptive Radiation

An evolutionary process in which organisms diversify rapidly into a multitude of new forms, particularly when a change in the environment makes new resources available or opens new niches.

Temporal Isolation

A mechanism of reproductive isolation where two species mate or flower at different times, preventing crossbreeding.

Reproductive Isolation

A set of mechanisms that prevent different species from interbreeding.