Firms should be more prepared to sell on credit to high-risk customers if:
A) the profit margin is low.
B) the probability of repeat orders is low.
C) the profit margin is high.
D) the firm's sales representative is paid on commission.

Question

Quizplus · Accepted Answer

Firms may be more willing to sell on credit to high-risk customers if the profit margin is high, as the potential for higher profits can offset the risk of non-payment.

Firms Should Be More Prepared to Sell on Credit to High-Risk