Absent any possibility of repeat orders,if the default probability is less than the profit margin,you should extend credit for the sale.

Name: Absent any possibility of repeat orders,if the default probability is less than the profit margin,you should extend credit for the sale.
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

If the default probability is less than the profit margin, there is still a net gain even if the buyer defaults. Therefore, extending credit for the sale in such circumstances would be beneficial.

Absent Any Possibility of Repeat Orders,if the Default Probability Is