What is the cancellation policy for CT?

The cancellation policy stating that cancellations can occur after one auto-draft is correct because it implies that a customer must maintain their subscription for at least one billing period before they are eligible to cancel. This is a common practice in subscription services, allowing the business to secure some initial revenue while giving customers some flexibility to change their minds after experiencing the service.

In contrast, the other options suggest more restrictive or ambiguous cancellation terms that do not align with typical practices in subscription services. For example, stating that cancellations are permanent after signing up would imply a lack of flexibility for customers, making it unlikely for a business to attract and retain subscribers. Requiring two months’ notice is also an uncommon policy and could dissuade potential customers from signing up if they feel they might be locked into a longer commitment. Lastly, claiming that cancellations cannot be processed would be impractical, as it would indicate that customers have no control over their subscriptions, which is not a viable business model.

Overall, option A reflects a balance between securing revenue for the business and providing reasonable flexibility for the customer.