For instalment selling, the amount of credit should not exceed the repossession value of the goods sold.

Question

Quizplus · Accepted Answer

This is correct as instalment selling involves allowing the customer to pay for the goods over a period of time, while retaining ownership until the final payment is made. To ensure that the seller can recover their costs in case of default, the credit amount should not exceed the value of the goods that can be repossessed and resold. This is known as the repossession value.

For Instalment Selling, the Amount of Credit Should Not Exceed