Which of the Following Is a Disadvantage of Selling on Credit

question 126

Multiple Choice

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

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

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Definitions:

Conflict

A situation where opposing ideas, interests, or individuals compete, leading to disagreements or disputes within a group or organization.

Differential Piece-rate

A wage system where employees are paid based on the quantity of work produced, with rates changing at specific production thresholds to incentivize higher output.

Modern Management

Contemporary approaches, strategies, and practices employed by managers to achieve organizational goals while adapting to changing environments.

External Incentives

Rewards or motivations that come from an external source, used to influence behavior or performance.