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WAEC Commerce 1997 Question 19

Question 19

Purchase and Sale of Goods

Which of the following is a disadvantage of credit transaction?

  1. A.increases turnover
  2. B.facilitates the sale of durable goods
  3. C.encourages the habit of saving
  4. D.encourages bad debts
  5. E.enables consumers to enjoy goods without immediate payment
Show the answer and explanation

Answer: D (encourages bad debts)

Explanation

Some credit customers fail to pay, causing bad debts.