The decision to offer credit depends on the probability of payment.You should grant credit if the expected profit from doing so is greater than the profit from refusing.

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The statement is true. Before offering credit, a business needs to consider the probability of receiving payment and compare it to the potential profit from the sale. If the expected profit from granting credit is higher than the potential profit from refusing, the business should offer credit.

The Decision to Offer Credit Depends on the Probability of Payment.You