Question 49
Purchase and Sale of GoodsWhich of the following is a disadvantage of Hire Purchase to the consumer?
- A.It increases turnover
- B.Temptation to buy more than one can pay for
- C.it demands more capital from the seller
- D.Increased sales lower the seller's unit cost
Show the answer and explanation
Answer: B (Temptation to buy more than one can pay for)
Explanation
Hire purchase makes buying easy, so consumers may take on more debt than they can repay.