It Is Not True That

question 4

Multiple Choice

It is not true that:

• A)If the firm is too generous in extending credit bad debts will occur
• B)If credit policies are too strict valuable customers may be lost
• C)A credit report from a credit rating agency is an important method of checking on customer's credit history
• D)Generally firms offer too much credit to customers

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Definitions:

Inequitable

Unfair or not just; an imbalance in the way people or groups are treated.

Equal Distribution

The sharing of resources, wealth, or opportunities among all members of a society or group in a way that is considered fair and equitable.

Lorenz Curve

A graphical representation of income or wealth distribution within an economy, indicating inequality.

45-degree Line

describes a line usually used in economics and other disciplines, where every point on it has equal x and y coordinates, often used as a benchmark in Keynesian cross diagrams.