Question

A business regularly extends credit to customers for large purchases with a standard interest rate of 5 percent. There is also a $200 installment fee that is added to the total cost of the purchase. What should the business do before extending credit to a regular customer? (1 point) Responses
A. Ask the customer the monthly payment they can afford.
B. Check the customer’s credit report to minimize the risk.
C. Nothing since the customer has a history with the company.
D. Require the customer to tell the business about any existing debts.

Answer 1

B. Check the customer’s credit report to minimize the risk.