All of These Are Negative Effects of Extending Credit to Customers

question 53

Multiple Choice

All of these are negative effects of extending credit to customers EXCEPT:

• A)it delays the receipt of cash.
• B)it creates a borrowing situation for the owners of the business providing credit.
• C)some customers with credit will not pay.
• D)it increases the cost of selling.

---

Definitions:

Leptokurtic

A distribution of values that is peaked or high relative to the normal curve. Values in such a distribution have a narrower range.

Monokurtic

Describing a distribution that has kurtosis similar to that of a normal distribution, indicating the data has moderate outliers or none, and the peak of the distribution is neither flat nor too sharp.

Standard Error

For a sampling distribution (the distribution of scores for a sample), the standard deviation is called the standard error.

Positive Skew

A distribution pattern in data where the tail on the right side of the histogram is longer or fatter than the left side, indicating that the majority of data points lie to the left of the mode.