A senior manager argues that the negative perception associated with m

QUESTION

A senior manager argues that the negative perception associated with mounting credit card debt will affect StarMart. Which of the following is the LEAST effective measure StarMart could take to address this potential problem?

A) publicize the company’s policies in clear and easy-to-understand language
B) charge no more than the typical interest rate for month-to-month debt
C) ensure that fees for exceeding credit limits are no higher than necessary
D) increase the value of the promotional items that attract new credit card customers
E) offer free debt counseling to Axiom-Star customers

ANSWER

Answer: D
Explanation: D) All of the choices are reasonable ways for StarMart to help consumers avoid excessive debt except Choice D, which encourages customers to spend themselves into deep credit card debt. This might yield short-term profits, but it would not be a good response to the manager’s concern.