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O-LevelCommerceCredit7100/11 · May/June 2011 · Q71 Mark

What is a disadvantage to the retailer of granting consumer credit?

Acompetition from other retailers

Bdelay in receiving payment for goods

Cincrease in costs of storing stock

Drequirement to replace faulty goods

✓ Correct answer

B: delay in receiving payment for goods

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About this question

Topic: Credit, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, May/June 2011 Paper 1 Variant 1, question 7.

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