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Question
In the text, the "red-line method" refers to
a. The policy of drawing a red line around certain neighborhoods on a map and then refusing to sell on credit to people who live within those areas.
b. Restrictions imposed by companies which insure credit risks.
c. The use, in Dun & Bradstreet's reports, of a red line to show the maximum amount of credit which should be extended to a given customer; companies using this limit when they screen customers' orders are said to be using the "red-line method."
d. A method of controlling inventories by drawing a red line on the inside of a bin.
e. A method of controlling receivables by drawing a red line on invoices of companies that are expected to pay late.
Answer
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