Buying on Credit Results in Payments Later and a Reduction

question 1

Multiple Choice

Buying on credit results in payments later and a reduction in the amount of future income available for spending is an example of a(n) :

• A)Opportunity cost
• B)Cash flow management
• C)Spending habits
• D)Savings plan

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Definitions:

External Customers

Individuals or entities that purchase a company's products or services but are not part of the organization itself.

Internal Customers

Individuals or departments within an organization that receive services or products from other parts of the same organization.

Merchants

Individuals or businesses engaged in the trade of goods, especially those who buy and sell goods for profit.

Competitive Advantage

An advantage a company has over its competitors, enabling it to generate greater sales, margins, and retain more customers.