Credit sales - SS2 Commerce Past Questions and Answers - page 1
What are credit sales?
Selling goods or services for immediate cash
Selling goods or services at a discount
Selling goods or services on credit, allowing payment at a later date
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What is the basis for credit sales?
Trust and relationship with customers
Availability of cash on hand
Competitive pricing strategy
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What is an advantage of credit sales?
Immediate cash flow and reduced administrative costs
Increased sales and customer loyalty
Decreased competition and higher profit margins
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What is a potential disadvantage of credit sales?
Reduced administrative costs and increased cash flow
Higher profit margins and decreased competition
Risk of bad debts and cash flow challenges
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What additional tasks are associated with credit sales?
Product development and marketing
Credit checks, invoicing, and collections
Employee training and recruitment
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Define credit sales in simple terms.
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What is one potential advantage and one potential disadvantage of credit sales?
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