When a potential customer has a mediocre credit history, a firm should never consider allowing them to become a customer.

Question

Quizplus · Accepted Answer

While a customer's credit history should be considered, it should not be the sole determining factor in whether or not they are allowed to become a customer. It is possible to mitigate the risk posed by a customer with mediocre credit by offering them a smaller credit line or requiring them to pay upfront for services. Ultimately, a firm should weigh the potential risks and benefits of doing business with any customer, regardless of their credit history.

When a Potential Customer Has a Mediocre Credit History, a Firm