A firm with ______ profit margin should extend credit to customers with a high probability of default.
A)High
B)Average
C)Low
D)Zero

Name: A firm with ______ profit margin should extend credit to customers with a high probability of default. A)High B)Average C)Low D)Zero
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Question

Quizplus · Accepted Answer

A firm with a high profit margin can better absorb the losses associated with extending credit to customers who may default, compared to firms with lower profit margins.

A Firm with ______ Profit Margin Should Extend Credit to Customers