Allowing Customers to Buy on Credit Is Only Profitable If

question 34

Multiple Choice

Allowing customers to buy on credit is only profitable if the costs associated with granting credit are less than the profit on the increased sales generated. Which of the following is not one of the additional costs of selling on credit?

• A) Sales commission
• B) Credit checks on customers
• C) Additional record keeping
• D) The cost of collecting outstanding debts

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Definitions:

Effective Managers

Managers who accomplish organizational goals, enhance productivity and satisfaction among team members through effective leadership, planning, communication, and problem-solving skills.

High Need

High need refers to an inner drive or requirement for a particular resource, condition, or outcome that is considered essential for an entity or individual's well-being or operational success.

Motivation Autonomous

The internal drive to undertake an activity for its inherent satisfaction or enjoyment, rather than due to external pressures or rewards.

Engaged in a Task

Being actively involved and committed to completing a specific job or duty.