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.

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Definitions:

Property Law

The area of law that governs the various forms of ownership and tenancy in real property (land as distinct from personal or movable possessions) and in personal property, within the common law legal system.

Dispose

To get rid of something, typically by throwing away or giving it away.

Type, Grade, Quantity

Specifications that define the quality and amount of materials or goods required for a particular purpose or contract.

Facility

A place, amenity, or piece of equipment provided for a particular purpose or function, often related to the execution of a service or production of goods.