If You Extend Credit for a One-Time Sale to a New

question 93

Multiple Choice

If you extend credit for a one-time sale to a new customer you risk an amount equal to:

• A)the sales price of the item sold.
• B)the variable cost of the item sold.
• C)the fixed cost of the item sold.
• D)the profit margin on the item sold.
• E)zero.

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Definitions:

Lower-Income Segment

A portion of the population or market characterized by lower earnings, often targeted by businesses offering more affordable products or services.

Developing Economies

Countries that are in the process of industrialization, with relatively low per capita income and seeking to improve their economic base.

Market-Creating Innovations

Innovations that establish new markets by solving unserved or underserved problems and fulfilling unmet needs.

Performance Innovations

Innovations aimed at enhancing the efficiency, productivity, or effectiveness of operations in organizations or systems.