Which one of the following statements is correct?
A) If the majority of your new customers become repeat customers then there is a strong argument against extending credit even if the default rate is low.
B) A customer's past payment history is not indicative of their future payment history.
C) A suggested policy for offering credit to new customers is to limit the amount of their initial credit purchase.
D) The risk of issuing credit is the same for a new customer as it is for an existing customer.
E) The recommended credit policy for new customers is to extend the maximum amount you are willing to ever extend to that customer as their initial credit limit.
Correct Answer:
Verified
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