Which of the Following Is a Disadvantage of Selling on Credit

question 50

Multiple Choice

Which of the following is a disadvantage of selling on credit?

• A)Some customers do not pay,creating an expense.
• B)Profits are decreased by making sales to a more specific range of customers.
• C)Sales can be made to fewer customers.
• D)Prices must be reduced when selling on credit.

---

Definitions:

Demand Schedule

A Demand Schedule is a tabular representation of the relationship between the price of a good or service and the quantity demanded by consumers, underlining the law of demand.

Patents

Legal documents granting an inventor exclusive rights to produce, use, and sell an invention for a certain number of years.

Research And Development

A business or government activity that involves the study and creation of new products, services, or discoveries.

LRAC Curve

Long-Run Average Cost Curve, showing the lowest average cost at which a firm can produce any given level of output in the long term.