Your own ﬁrm's short-term ﬁnancing cost should be considered when deciding whether or not you
should offer credit to customers.

Question

Quizplus · Accepted Answer

The firm's short-term financing cost is an important factor that should be considered when deciding whether or not to offer credit to customers. If the cost of financing the credit is higher than the potential profit from the sale, it may not be financially viable for the firm. Additionally, if a large number of customers are given credit and fail to make timely payments, it could negatively impact the firm's cash flow and increase its financing costs.

Your Own ﬁRm's Short-Term ﬁNancing Cost Should Be Considered When