To Encourage Credit Customers to Pay Invoices Promptly, a Business

question 46

Multiple Choice

To encourage credit customers to pay invoices promptly, a business owner should ________.

• A)ensure that all invoices are clear, accurate, and timely
• B)state clearly a description of the goods or services purchased and an account number
• C)include a telephone number and a contact person in case the customer has a question or a dispute
• D)All of the above

---

Definitions:

Deadweight Losses

Losses in total surplus that occur when a market is not in competitive equilibrium, often due to taxes or subsidies.

Economic Efficiency

A situation where all resources are allocated in a way that maximizes the total benefit to society or minimizes waste.

External Cost

A cost that a transaction or activity imposes on a party who is not involved in the transaction, often not reflected in market prices.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often associated with environmental, health, and safety concerns of public and private actions.