Ask Question
BusinessBusiness
22 December, 05:54

Give 2 advantages and 2 disadvantages of selling goods on credit

+3
Answers (1)
  1. 22 December, 05:55
    0
    Disadvantages

    It can lead to bad debts. There is no guarantee that the customers will pay back.

    Loss of income/capital. Bad debt is a loss of income as well as loss of capital you have invested in buying the goods.

    Explanation:

    Advantages

    Generally, selling on credit means the seller can charge interest. This means more money for the seller, assuming the buyer pays off the debt. It will attract more people into coming to your store. It encourages customers to increase the amount of their spending.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Give 2 advantages and 2 disadvantages of selling goods on credit ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales: 460 Selling price per unit: $1,950 Cost per
Answers (1)
Refer to exhibit 20-2. the market for good x is initially in equilibrium at $5. the government then places a per-unit tax on good x, as shown by the shift of s1 to s2. approximately what percentage of the tax do producers end up paying
Answers (1)
Your grandmother has been putting $5,000 into a savings account on every birthday since your first (that is, when you turned 1). The account pays an interest rate of 8%.
Answers (1)
Knowledge Check 01 Turing City, Inc., purchased equipment and agreed to pay the supplier $500 per month for 10 months and an additional $5,000 at the end of 10 months. The supplier is charging 12% interest per year, or 1% per month.
Answers (1)
Daniel Corporation's end-of-period spreadsheet at the end of July has $4,950 in the Balance Sheet Credit column for Accumulated Depreciation.
Answers (1)
New Questions in Business
Which phrase defines complementary goods
Answers (1)
If a company's current assets increase, what might we assume about their inventory levels? a) It increasedb) It decreasedc) It stayed the samed) We don't have enough information to decide
Answers (1)
What is the effect of import restrictions on prices? a. they cause prices to drop. b. they cause prices to rise. c. they often cause prices to rise steeply and then drop. d. they usually do not have any lasting effect on price?
Answers (1)
Joan is a manufacturing engineer who works on a new product development team along with members from design, engineering, production, purchasing, finance, marketing, and quality assurance.
Answers (2)
Which are costs subtracted from in calculating profit? revenue wages overhead debt
Answers (1)
Home » Business » Give 2 advantages and 2 disadvantages of selling goods on credit
Sign Up Forgot Password?