Which of the following in NOT a potential benefit of granting trade credit?
A)Enhances competitiveness for the firm granting credit.
B)A delay in receiving payment from customers.
C)May assist in generating additional sales.
D)May allow quicker movement of inventory.

Question

Quizplus · Accepted Answer

A delay in receiving payment from customers could potentially harm the cash flow and liquidity of the firm, which could outweigh any benefits from granting trade credit.

Which of the Following in NOT a Potential Benefit of Granting