Which of the following is NOT listed as a trigger for implementing Additional Operating Requirements?

• A. Two late sales reports
• B. Two dishonored drafts/checks
• C. Two defaults
• D. Three late sales reports

Answer: (D)

The main idea is understanding how Additional Operating Requirements are triggered by repeated problems. ARC uses a two-event threshold to flag issues: two late sales reports, two dishonored drafts or checks, or two defaults. The option that mentions three late sales reports does not fit because it exceeds the two-event threshold and isn’t part of the defined triggers. The other choices match the established two-occurrence triggers, confirming they are the listed triggers.