Evidence from recent studies indicates that creditors behave as if they _______ understand the goodwill tradeoff when selecting collection methods and that they are __________ aggressive in collecting receivables when their receivable investment grows relatively large.

Question

Quizplus · Accepted Answer

Creditors are aware of the goodwill tradeoff when choosing collection methods and become more aggressive in collecting receivables as their investment in receivables increases.

Evidence from Recent Studies Indicates That Creditors Behave as If