In economic terms,_____________________ occur when the benefit of defaulting on a payment is less than the present value of future benefits in a relationship.

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Open accounts refer to credit relationships between buyers and sellers where payment is due at a later date. The decision to default on a payment depends on the cost-benefit analysis of the parties involved. If the benefit of defaulting is less than the future benefits that the relationship can offer, then defaulting may not be the best option. Hence, option C is the most appropriate choice for this statement.

In Economic Terms,_____________________ Occur When the Benefit of Defaulting on a Payment