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One Drawback of Offering Liberal Credit to Customers Is That

Question 54

Multiple Choice

One drawback of offering liberal credit to customers is that it can:


A) delay sales to a future period.
B) increase the cost of credit to customers.
C) delay the receipt of cash that the firm needs to meet its financial obligations.
D) decrease sales by the extension of credit and cause a loss to the company.

Correct Answer:

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