An advantage of offering lenient credit terms is that it can help a firm:
A) decrease its debt.
B) increase its sales.
C) reduce its risk associated with financial leverage.
D) improve cash flows from an investment.

Question

Quizplus · Accepted Answer

Offering lenient credit terms can attract more customers, thereby increasing sales as more customers are willing to purchase on credit.

An Advantage of Offering Lenient Credit Terms Is That It