By offering credit to customers, the firm may
A) decrease its investment in accounts payable.
B) decrease the cost of goods purchased.
C) increase the price of the good to cover its costs.
D) decrease its investment in accounts receivable.

Question

Quizplus · Accepted Answer

Offering credit to customers can lead to an increase in the price of goods to cover the costs associated with providing credit, such as interest and risk of non-payment.

By Offering Credit to Customers, the Firm May