Why should the possibility of a repeat order increase a firm's willingness to grant credit?
A) The expected cash flow from two orders is twice that from one order.
B) The sales rep would earn increased commission.
C) The customer can be given more time to pay.
D) Payment on the first order increases the chance of payment on subsequent orders.

Question

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Payment on the first order increases the chance of payment on subsequent orders.

Why Should the Possibility of a Repeat Order Increase a Firm's