Screening debtors can help a business prevent which of the following?

Screening debtors is a crucial practice for businesses as it helps to assess the creditworthiness of potential customers before extending credit to them. This process is designed to identify the likelihood of a debtor defaulting on their payments. By carefully evaluating a debtor's financial history, payment habits, and overall reliability, a business can minimize the risk of incurring bad debts in the future. When a company effectively screens its debtors, it can reduce the potential for losses that occur when customers are unable or unwilling to pay their outstanding balances.

The focus on reducing future bad debts is vital for maintaining a healthy cash flow and ensuring financial stability. By preventing bad debts before they occur, businesses can protect their profits and invest in growth opportunities. This proactive approach not only secures the current accounts receivable but also supports long-term financial health by avoiding write-offs associated with non-payment.

The other options do not directly relate to the impact of screening debtors. Increased employee turnover is more linked to human resource management and workplace culture. Higher operational costs generally pertain to inefficiencies in business processes and resource management, while delays in shipment involve logistical and supply chain issues, which are not influenced by the debtor's creditworthiness. Therefore, the emphasis on screening debtors clearly points to