Question 28
Purchase and Sale of GoodsA merit of credit sale is
- A.increase in the number of businesses.
- B.improvement in living standard.
- C.reduction in administrative cost.
- D.reduction in bad debts.
Show the answer and explanation
Answer: B (improvement in living standard.)
Explanation
Credit lets people buy and use goods (e.g. furniture, appliances) before they have the full price, which raises their standard of living. It actually increases the risk of bad debts.