A major concern for firms selling on credit is:
A)the inability to utilize factoring as a source of financing.
B)the resulting increase in the debt ratio for the firm.
C)the realization that many credit customers never pay their bills.
D)not all firms accept credit cards.

Question

Quizplus · Accepted Answer

The major concern for firms selling on credit is the realization that many credit customers never pay their bills, leading to bad debts and potential financial losses for the company. This can also impact the firm's cash flow and working capital management. Factors such as the inability to utilize factoring or the debt ratio are also important considerations, but they are not the primary concern for firms selling on credit. The fact that not all firms accept credit cards may be a concern for customers, but it does not directly impact the firm's credit sales operations.

A Major Concern for Firms Selling on Credit Is