What do you think might be a potential drawback to a company extending credit to its customers?
What will be an ideal response?
Answer: One drawback to a company extending credit to its customers is it may find it has a significant percentage of its assets tied up in credit, which means it will need to have an active collection arm, which costs money.
Explanation: There are several potential drawbacks to extending credit to customers. Among them is the extra cost potentially required for a collection arm, especially if the company feels it has a high percentage of its assets tied up in credit.
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When Hayley had some problems with the applications on her cell phone, she gave her cell phone to the service center for a software update. The service center returned the phone to Hayley the next day, with the software update complete
Two days later, the service center called Hayley to enquire if the phone was functioning well. Which area of services marketing does this incident illustrate? Why is this important?
King Sales sells a certain product for $20,000. Included in this price is an implied service-type warranty of $600. Fifty machines were sold in 2016. Warranty expense incurred during 2016 amounted to $35,000. Which of the following entries would King Sales probably not make in 2016?
A) ?Unearned Warranty Revenue 35,000Warranty Revenue 35,000 B) ?Cash 1,000,000Sales 970,000Unearned Warranty Revenue 30,000 C) ?Cash 30,000Warranty Revenue 30,000 D) ?Warranty Expense 35,000Cash (or other assets) 35,000
The right to sue another party for a violation of personal rights can be assigned
Indicate whether the statement is true or false
Constraints are needed to solve linear programming problems by hand, but not by computer
Indicate whether the statement is true or false