Once a Small Business Has Established a Firm Written Credit

question 13

Multiple Choice

Once a small business has established a firm written credit policy and has clearly communicated it, the next step in building an effective credit policy is to ________.

• A)send invoices promptly
• B)determine what percentage of sales are being written off as bad debt
• C)create a simple credit application
• D)create a "tracking file" of events

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Definitions:

Fear

An unpleasant emotion caused by the belief that someone or something is dangerous, likely to cause pain, or a threat.

Internal Locus

Refers to the belief that one has control over their life and outcomes, attributing success to personal abilities and efforts.

External Locus

A belief that one's life outcomes are generally determined by external forces or circumstances beyond personal control.

Self-Actualized Potential

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.