Which of the Following Argues for Extending Credit?​

question 43

Multiple Choice

Which of the following argues for extending credit?​

• A) ​an increase in sales and an increase in collection costs
• B) ​an increase in bad debt expense and a decrease in collection costs
• C) ​an increase in both carrying costs and in sales
• D) ​an increase in both sales and inventory turnover

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Definitions:

Industry Growth

The rate at which a specific industry expands its capacity, production, or market size over a period.

Buyer Power

The influence and negotiating power that consumers or purchasing agents have over sellers in an economic marketplace.

Decrease Buyer Power

Strategies or market conditions that reduce the negotiation leverage of buyers, enhancing the seller's position.

Command A Higher Price

Being able to sell goods or services at a price above the average due to perceived added value, quality, or brand reputation.