Identify the Likely Disadvantage(s)of Extending Credit to Customers

question 128

Multiple Choice

Identify the likely disadvantage(s) of extending credit to customers.

• A)Delay or failure to collect cash.
• B)Lower profitability.
• C)Lower revenues.
• D)All of the other answers are disadvantages of extending credit to customers.

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Definitions:

Generalization

The process of forming conclusions based on a limited set of observations or examples.

Method

A systematic way of doing something, often involving a detailed plan or procedure.

Caterpillars

The larval stage of butterflies and moths, known for their voracious appetite before transitioning into pupae.

Sufficient Condition

A condition or set of conditions that, if met, guarantees that a certain state or event will occur, though it may not be necessary for the occurrence.