It Is Not True That

question 27

Multiple Choice

It is not true that:

• A) if the firm is too generous in extending credit bad debts will occur.
• B) if credit policies are too strict valuable customers may be lost.
• C) a credit report from a credit rating agency is an important method of checking on customer's credit history.
• D) generally firms offer too much credit to customers.

---

Definitions:

Prairie Dog

A small burrowing rodent found in the grasslands of North America, known for its complex social structures and communication methods.

Available Grassland

Land areas covered with grass that are accessible and suitable for grazing animals or potentially for cultivation and other uses.

Drought

An extended period of deficient rainfall relative to the statistical multi-year average for a region, resulting in prolonged shortages in the water supply.

Downward-Sloping

A graphical representation showing a decline or decrease from left to right, often used to describe demand curves where price and quantity demanded move in opposite directions.