Which One of the Following Statements Is Correct

question 19

Multiple Choice

Which one of the following statements is correct?

• A)If the majority of a firm's new customers become repeat customers then there is a strong argument against extending credit even if the default rate is low.
• B)A customer's past payment history reveals little information in relation to his or her future tendency to pay.
• C)A suggested policy for offering credit to new customers is to limit the amount of their initial credit purchase.
• D)The risk of issuing credit is the same for a new customer as it is for an existing customer.
• E)The recommended credit policy for new customers is to extend the maximum amount of credit you will ever be willing to offer as an enticement to get their business.

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Definitions:

Electroencephalograph

An instrument used to record the electrical activity of the brain, often used in diagnosing conditions like epilepsy or monitoring the depth of anesthesia.

Neurofeedback

A type of biofeedback that uses real-time displays of brain activity to teach self-regulation of brain function.

Epilepsy

A neurological disorder marked by sudden recurrent episodes of sensory disturbance, loss of consciousness, or convulsions, associated with abnormal electrical activity in the brain.

Positive Reinforcer

An incentive that, when introduced following an action, enhances the probability of that action occurring again.