An Heuristic Approach to Evaluating Credit Policy Alternatives,which Involves Estimating

question 1

Multiple Choice

An heuristic approach to evaluating credit policy alternatives,which involves estimating profit effects of each alternative,is the

• A)net present value (NPV)approach
• B)financial statement approach
• C)discounted cash flow approach
• D)scenario-based approach
• E)liquidity analysis approach

---

Definitions:

Attraction

A force that draws individuals together, leading to friendships, romantic relationships, or other forms of social interaction.

Similarity

The state of being alike or having attributes in common, often used in psychology to explain patterns of grouping in perception and social relationships.

Reciprocity

A social norm of responding to a positive action with another positive action, rewarding kind actions.

Cognitive Dissonance

A psychological phenomenon involving discomfort felt by an individual when they hold conflicting beliefs, attitudes, or behaviors simultaneously.