The PRIMARY Reason Given by Those Companies That Impose Credit

question 14

Multiple Choice

The PRIMARY reason given by those companies that impose credit limits is:

• A)to control risk exposure
• B)because of customer's financial position
• C)because of experience with customer
• D)to improve the supplier's perceived status by signaling selectivity

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Definitions:

Advertising

The activity or profession of producing advertisements for commercial products or services to attract potential customers or clients.

Ad Substantiation

An FTC standard requiring advertisers to have a reasonable basis for the claims made in their ads.

Reasonable Basis

A justification or foundation for belief or action that is considered fair or sensible under given circumstances.

Claims

Demands for something due or believed to be due, typically used in the context of legal or insurance disputes.