An advantage of offering more lenient credit terms is that it helps a firm _____.
A) decrease its debt
B) increase its sales
C) reduce its risk
D) improve cash flows

Question

Quizplus · Accepted Answer

Offering more lenient credit terms can encourage customers to make more purchases, which can ultimately increase a firm's sales. However, this may also increase the risk of bad debt if customers do not pay their bills on time.

An Advantage of Offering More Lenient Credit Terms Is That