The major objective of a firm in granting credit is
A) generating consumer goodwill.
B) reducing bad debt risk.
C) make sales.
D) promoting the business.

Question

Quizplus · Accepted Answer

The major objective of granting credit is to generate sales. By allowing consumers to pay for products or services over time, a firm can increase its revenue and expand its customer base. While generating consumer goodwill and promoting the business may be secondary benefits of offering credit, they are not the primary objective. Reducing bad debt risk is important, but it is not the primary objective of granting credit.

The Major Objective of a Firm in Granting Credit Is