Long-term customer relationships ________ the cost of information collection and make it easier to ________ credit risks.

Question

Quizplus · Accepted Answer

Long-term customer relationships typically involve a higher degree of trust between the parties involved, which can lead to reduced costs of information collection. This is because customers are likely to willingly provide information about their financial situation over time, which makes it easier for the business to screen credit risks. The choice letter A accurately reflects this relationship.

Long-Term Customer Relationships ________ the Cost of Information Collection and Make