A Company Extends Credit to Customers Because It Expects The

question 1

Multiple Choice

A company extends credit to customers because it expects the:

• A)benefits from the rise in sales revenue to be greater than the cost of extending credit.
• B)interest charged to be greater than the cost of extending credit.
• C)tax savings from a lower net income to be greater than the cost of extending credit.
• D)because its borrowing cost is lower than the cost of extending credit.

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Definitions:

Bypassing

Overlooking or avoiding a prescribed process or procedure, often to achieve a goal more quickly.

Composing The Message

The process of creating and structuring written or verbal communication to effectively convey information or intent to the recipient.

Sending The Message

The process of conveying information, intentions, or instructions to others through various forms of communication.

Business Communication

The exchange of information and ideas between individuals or groups within a commercial context, using various modes and channels to achieve specific organizational goals.