Once a Credit Account Becomes Past Due, a Small Business

question 37

Multiple Choice

Once a credit account becomes past due, a small business owner should ________.

• A)wait patiently; the customer will most likely pay the bill eventually
• B)turn the account over to a collection agency the day it becomes past due
• C)send a "second notice" letter requesting immediate payment
• D)call the "deadbeat" in the middle of the night and make harassing and threatening remarks until he pays

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Definitions:

Offeree

The person or party to whom an offer is made in a contract situation.

Mutual Promises

Agreements where both parties commit to perform or refrain from specific actions, forming the basis of a contract.

Enforced

Enforced means to compel compliance or adherence to a law, rule, or obligation, often involving the implementation of measures to ensure that terms or directives are followed.

Void Contracts

Agreements that are not legally enforceable from the outset due to the presence of certain defects in the contract.