Which of the Following Is True of Offering Direct Credit

question 59

Multiple Choice

Which of the following is true of offering direct credit to customers?

• A) It discredits the business's reputation.
• B) It always decreases business risk.
• C) It ensures on-time payment from customers.
• D) It increases sales for the business.

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Definitions:

Tying Arrangement

A business practice where the sale of one product is linked to the compulsory purchase of another, often scrutinized under antitrust laws.

Tying Arrangement

A business practice where the sale of one product or service is conditioned on the purchase of another product or service.

Product Conditions

The state or quality of goods sold, including their fitness for the intended purpose and compliance with any expressed or implied warranties.

Seller

An individual or entity that transfers goods, services, or property to another party in exchange for money or other compensation.