In a competitive market it is necessary to extend credit to at least some customers in order to avoid losing market share to competitors.

Question

Quizplus · Accepted Answer

Extending credit to customers can be a strategy to attract and retain them, as it makes it easier for them to make purchases even if they do not have the immediate funds available. This helps businesses maintain and potentially grow their market share, especially if their competitors are also offering credit to customers.

In a Competitive Market It Is Necessary to Extend Credit