Which of These Is True About Providing Credit

question 56

Multiple Choice

Which of these is true about providing credit?

• A)It usually results in lower sales revenues.
• B)It accelerates the receipt of cash.
• C)It reduces the cost of selling.
• D)It forces all the customers to pay.

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Definitions:

Pygmalion Effect

A psychological phenomenon where higher expectations lead to an increase in performance.

Halo Effects

A cognitive bias where an observer's overall impression of a person, company, brand, or product influences feelings and thoughts about that entity's character or properties.

Performance Appraisal

The assessment of an employee's job performance and productivity, typically for purposes of performance feedback, development, or evaluation.

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts, feelings, and motives to another person.