Potential losses can occur in the credit evaluation process when ____.
A) credit is denied to a creditworthy customer
B) the credit decision is delayed too long
C) credit is denied to a customer who is not credit worthy
D) credit is denied to a creditworthy customer and the credit decision is delayed too long

Question

Quizplus · Accepted Answer

Denying credit to a creditworthy customer can result in lost sales and potential reputation damage, while delaying the credit decision can lead to missed business opportunities. Therefore, the best choice is D, as it covers both potential losses.

Potential Losses Can Occur in the Credit Evaluation Process When